In an effort to accelerate the ASEAN Power Grid vision and for countries to reach their net-zero goals, several ASEAN members have taken the initiative to promote cross-border clean energy electricity trade. On May 29, Lao PDR, Cambodia, and Singapore jointly established a working group to assist regulatory, commercial, and development frameworks for cross-border electricity trade and clean energy sharing among the three countries. Singapore has also recently teamed up with Vietnam and the U.S. to create a working group that focuses on building consensus on subsea power cable networks to enhance power interconnectivity. Not too long ago, Malaysia established its own program, Energy Exchange Malaysia (ENEGEM), to facilitate cross-border sales of green energy from Malaysia to Singapore and Thailand.
The commitments of ASEAN countries for multilateral renewable energy trade send a positive signal to potential U.S. energy developers looking to invest in renewable energy in the region. Cross-border trade will enable energy production in more feasible and cost-effective locations and allow for sales where demand is higher. For current developers, this can potentially translate to an expanded export market reach. It should be noted that more trading activities are expected among Malaysia, Singapore, and mainland Southeast Asia compared to the region’s maritime states due to the existence of pre-established transmission lines and grid infrastructure.
