General Electric : How Thailand Can Become A Power Hub For ASEAN

Closer trade, economic, political, military, and education ties among ASEAN nations are some of the main benefits touted by supporters of regional integration.

Cross-country energy partnership is one of the priority areas for member countries after the first tripartite electricity transmission agreement in ASEAN was signed in Manila in November.

The long-discussed partnership became reality when Malaysia, and Laos, confirmed an Energy Purchase and Wheeling Agreement (EPWA). Under the EPWA, Laos will generate and sell 100 megawatts (MW) of low-carbon hydroelectric power to Malaysia.

Although the two nations sit almost 2,000 km apart, the cross-border transfer of power relies on the cooperation of their common neighbor, Thailand - the electricity will be distributed from Laos to Malaysia via Thailand's transmission system.

The utility companies involved in the deal are Electricite du Laos, Electricity Generating Authority of Thailand, and Tenaga Nasional Berhad in Malaysia.

Connecting and powering ASEAN

While the concept of an ASEAN Power Grid (APG) was first raised in 1997, it has taken nearly 20 years for the first project to materialize. Greater energy security and a network to accelerate electrification throughout the region were some of the priorities put forward by supporters of the APG.

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Location, location, location

Thailand is the logical electricity transmission hub for the region as it shares land borders with Cambodia, Laos, Malaysia, and Myanmar. Parts of the Kingdom are also less than 100km from China and Vietnam. In addition, the connection through Malaysia also opens-up an existing power link through to Singapore.

Infrastructure-wise, Thailand boasts a comparatively modern grid network to support cross-country deals. In terms of transmission loss, Thailand's grid is three or four times more reliable than the legacy infrastructure installed elsewhere in the greater Mekong region.

Laos - the small nation with big power generation ambitions

While Thailand is eager to support more regional electricity transmission deals, Laos is currently expanding its power generation infrastructure. Laos has an estimated 26,000 MW of hydroelectric power potential and up to 75% of this is projected to be exported to neighboring countries via Thailand. Cambodia has similar hydroelectricity ambitions with new dams and hydropower plants in development to support domestic demand, as well as potential exports in the future.

Sparking a brighter more united future

The historic multi-lateral power trade deal between Laos, Malaysia, and Thailand is expected to the first of more energy collaboration in the years ahead.

ASEAN members have identified 16 cross-border projects through $6 billion of investment under the APG initiative, which could transfer up to 23,200 MW of power across the region.

Through the APG network, government leaders view regional power trading as an effective way for countries with excess installed capacity to export to neighboring countries facing blackout issues, and those who need more energy to speed up economic, industrial, and infrastructure plans.