More infrastructure investments needed to scale up Asean power grid: Panellists

The Asean power grid, which will allow countries in the region to trade electricity with one another, has made some headway with several recent agreements.

- Chin Hui Shan

But scaling it up would require more investments in grid infrastructure, said panellists at an energy conference on Jan 12.

Grid infrastructure includes overland and subsea cables. These are critical in ensuring that electricity can be distributed from the generation source, such as a renewable energy project, to where users are.

Increased investments in grid infrastructure will help to make the transition to renewable energy more affordable in developing countries still reliant on fossil fuels, said the panellists.

It will also help to strengthen interconnections between countries to facilitate cross-border electricity trade, they added.

They were speaking at a discussion on finance for energy transition in developing countries held at the 15th Irena Assembly in Abu Dhabi in the United Arab Emirates.

Irena is the International Renewable Energy Agency.

Dr Rowena Guevara, the undersecretary at the Department of Energy in the Philippines, said greater funding support can help the country make the transition to renewable energy more affordable.

For example, she cited how transmission lines are needed to connect renewable energy plants with homes and offices. If multilateral development banks can help to fund such infrastructure for renewable energy developers, it can help to lower the cost of capital for the private sector.