ASEAN Power Grid To Focus On Longer Regional Interconnections - Energy Commission CEO
KUALA LUMPUR, Oct 17 (Bernama) -- The ASEAN Power Grid (APG) is entering a new phase of expansion, focusing on longer regional interconnections that are critical to delivering renewable energy across the region, said Energy Commission chief executive officer Siti Safinah Salleh.
She said the challenge now lies in financing and development risk, as many projects involve subsea interconnections of up to 700 kilometres.
Siti Safinah said that these projects were largely undertaken by private ventures rather than through system off-takers, making the revenue risk higher.
“We need to firm up the off-taking arrangements and strengthen the requirements from off-takers. That is a very crucial part of the ASEAN Power Grid,” she said at a session on “Accelerating Energy Transition Investment” at the ASEAN Energy Business and Forum here today.
Siti Safinah added that foundational elements of the governance framework and technical standards were already in place and are now being built upon.
Meanwhile, Asian Development Bank (ADB) Southeast Asia Green Finance Hub head Scott Roberts said the region faces an estimated financing gap of US$200 billion (US$1 = RM4.22) annually for its climate agenda, underscoring the need to scale up sustainable finance.
He said ADB aims to catalyse private capital by developing scalable models that allow the market to operate independently.
Roberts also noted that through its green, social, sustainable and other thematic bond programmes, ADB has advised around US$4 billion of ASEAN local currency issuances, which have subsequently spurred follow-on issuances equivalent to US$13 to US$14 billion.
He added that these initiatives have built market confidence and created a foundation for future private sector participation in financing the region’s energy transition.
-- BERNAMA