SINGAPORE — Financing will be the main obstacle in the way of the $800-million ASEAN power grid, the Department of Energy said.
“The ASEAN Power Grid’s cross-border projects demand substantial capital, calling for innovative financing models and blended mechanisms that leverage public, private, and multilateral support,” Energy Secretary Sharon S. Garin said in a speech delivered at the Singapore International Energy Week.
The ASEAN, the Asian Development Bank and the World Bank recently launched a new financing initiative to support the grid, which aims to connect the electricity networks of the bloc’s member countries, enabling cross-border power trading. The target timetable for the program is 2045.
According to the World Bank Group, the project will require an estimated $800 billion in generation and transmission investments.
“This interconnected system will drive the transition toward a cleaner, resilient, and sustainable energy future, where progress and prosperity are shared equitably across the member states,” Ms. Garin said.
She said the private sector will be an “indispensable partner” while governments provide direction.
“The Philippines stands ready to contribute to this shared vision,” Ms. Garin said, highlighting its own interconnection of the three major island grids following the completion of the Mindanao-Visayas transmission interconnection project.
“This experience, though on national scale, reflects the same principles of the ASEAN Power Grid, wherein by linking our systems, we can optimize our various resources and contribute to stability of supply,” she said. — Sheldeen Joy Talavera