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ASEAN members must have power security before turning to regional grid — Thai regulator

By Sheldeen Joy Talavera, Reporter JAKARTA — Southeast Asian countries need to achieve a measure of power security…

Context & Analysis

The idea of an ASEAN electricity grid is often sold as a way to share renewable energy, lower costs, and strengthen regional trade. The more practical question is whether member states can first make their own grids dependable enough to participate in one. Regional interconnection can help only where each country has enough dispatchable capacity, clear market rules, and reliable settlement mechanisms.

For Philippine businesses, electricity reliability remains a core operating issue. Factories, data centers, cold chains, retail spaces, and agribusinesses all depend on continuous supply, especially as typhoons, aging infrastructure, and rising demand can strain the system. A regional grid could eventually give the country more options: access to neighboring generation resources, better peak management, and possibly cheaper power if competition and efficiency improve. But those benefits are not automatic. They require clear rules for cross-border sales, tariff transparency, settlement currency, grid code alignment, cybersecurity standards, and dispute resolution. Without them, businesses may face new uncertainty rather than less.

The Philippines also has a long history of balancing energy security with affordability and the transition to cleaner power. Any move toward regional interconnection will likely involve local energy regulators, grid operators, and government agencies in coordinating how imported or exported electricity affects domestic tariffs, renewable energy targets, and local generation planning. Investors will watch whether Manila treats the ASEAN grid as a near-term project pipeline or a long-range policy framework. The more important early signals are not grand announcements but concrete steps: feasibility studies with clear financing structures, pilot interconnector proposals, private-sector offtake interest, and regulatory reforms that make cross-border power trades bankable.

Consumers should read the issue as a reminder that lower-cost, cleaner electricity requires institutional work before wires. For businesses, the strategic takeaway is to continue planning around local grid reliability while monitoring whether ASEAN cooperation matures from study phases into contracts.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: bworldonline.com

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