A NEW MULTILATERAL ELECTRICITY TRADING MODEL FOR ASEAN

Abstract

The ASEAN Power Grid (APG) was initiated in 1997 as a means to achieve energy security in Southeast Asia in a sustainable manner. Two decades on, the APG project faces significant challenges to the development of both physical and institutional infrastructure. Many of these cannot be easily addressed due to the socio-political realities of the region. The ASEAN electricity exchange initiative (AEE), a proposal by the ASEAN Energy Market Initiative, may prove to be a more feasible approach for regional power sector integration, as it does not require complete domestic electricity market unbundling or privatization. This thesis analyzes regional electricity exchanges that have been set up around the world in order to derive useful lessons, structures, and approaches that are applicable for the AEE’s conception and implementation.