IEA working with ASEAN on developing multilateral power trade in the region

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The Clean Energy Transitions in Emerging Economies programme (CETEE) has received funding from the European Union’s Horizon 2020 research and innovation programme (H2020) under grant agreement No 952363. From 1 January 2020, the EU H2020 grant is funding work with ASEAN stakeholders, under the specific work stream on regulation, market design and investments, to assist in developing Multilateral Power Trade (MPT) in the region.

This work builds on the 2019 IEA and ASEAN report “Establishing Multilateral Power Trade in ASEAN” which was published with the support of the ASEAN-Australia Development Cooperation Program (AADCP) 2. This report was acknowledged at the 37th ASEAN Ministers on Energy Meeting (AMEM). In addition ASEAN stakeholders were tasked with bringing forward the minimum requirements for establishing multilateral power trade that the IEA recommended in the report.                                                                 

The CETEE falls within the IEA’s broader Clean Energy Transitions Programme (CETP) and work on market design and regional integration continues with the efforts supporting the ASEAN community in establishing multilateral power trade. In that respect IEA is engaging closely with the ASEAN energy regulators network (AERN). In ASEAN the regulatory network is a relatively newly established body, and as such the regulatory network is assessing the different roles that they can play in relation to the establishment of multilateral power trade.

The IEA’s participation in the following AERN meetings was funded through the within the CETEE work stream on regulation, market design and investment:

  • 5th meeting of the AERN Working Groups 1 and 2 held on July 28 2020
  • 11th meeting of the ASEAN Energy Regulators’ Network on July 29 2020 

At the meetings mentioned above Randi Kristiansen, Economics and Financial Analyst – Clean Electricity, participated on behalf of the IEA. In the meetings the IEA presented several contributions. Two key contributions were the following discussion papers, which were produced for ASEAN, as they are specific to the political context of ASEAN only. 

  • Data and information sharing
  • Dispute resolution

The discussion papers take international experience and relate it to the specific circumstances of ASEAN, in order to provide input on how ASEAN can learn from international best practices on these topics, which are central to establishing MPT in the region.

The outcome of the AERN meeting on July 29th 2020 was that the IEA will continue to support AERN within the CETEE on three key topics

  • Guideline on grid code frameworks
  • Frameworks on data and information sharing
  • Frameworks on dispute resolution

All three topics follow-up on the minimum requirements that the IEA identified in the study “Establishing Multilateral Power Trade in ASEAN”, which are key areas that are needed in order for MPT to progress in the ASEAN region.

The IEA will also play a key partner in the information sharing and knowledge gathering of AERN on the wider topic of MPT. Knowledge exchange workshops with regulators from other regions will be organised, and workshop materials will be available on the CETEE webpage once the workshops have been facilitated.

The Clean Energy Transitions in Emerging Economies programme has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 952363

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