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Power Generation and Cross-border Grid Planning for the Integrated ASEAN Electricity Market: A Dynamic Linear Programming Model

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  • Youngho Chang
  • Yanfei Li

Abstract

The central question raised in this study is how to meet the growing power demand in ASEAN countries in the next two decades. Uneven distribution of energy resources and uneven paces of economic development among ASEAN countries complicate the question. The ASEAN Power Grid (APG) that interconnects all ASEAN countries and enables cross-border power trade could potentially provide cost-saving solutions. This study builds a dynamic linear programming model and simulates optimal development paths of power generation capacities in ASEAN countries. Scenarios are built around the assumptions about the power trade policy regimes. It is found that more open power trade regime encourages more development of renewable sources of power generation, and accrues more savings in the total cost of meeting the growing future power demand from 2010 to 2030.

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This chapter was published in:

  • Yanrui Wu & Xunpeng Shi & Fukunari Kimura & Yu Sheng & Youngho Chang & Yanfei Li & Sun Xuegong & Guo Liyan & Zeng Zheng & Daisy Shen & Qing Yang & Kongchheng Poch & Savong Tuy & Sekar Utami Setiastuti, . "Energy Market Integration in East Asia: Theories, Electricity Sector and Subsidies," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 2011-rpr-17 edited by Yanrui Wu & Xunpeng Shi & Fukunari Kimura, August.
    This item is provided by Economic Research Institute for ASEAN and East Asia (ERIA) in its series Chapters with number 2011-rpr-17-03.

    Handle: RePEc:era:chaptr:2011-rpr-17-03

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Chang, Youngho & Hin Tay, Tuan, 2006. "Efficiency and deregulation of the electricity market in Singapore," Energy Policy, Elsevier, vol. 34(16), pages 2498-2508, November.
    2. Yu, Xiaojiang, 2003. "Regional cooperation and energy development in the Greater Mekong Sub-region," Energy Policy, Elsevier, vol. 31(12), pages 1221-1234, September.
    3. Watcharejyothin, Mayurachat & Shrestha, Ram M., 2009. "Effects of cross-border power trade between Laos and Thailand: Energy security and environmental implications," Energy Policy, Elsevier, vol. 37(5), pages 1782-1792, May.
    4. Varun & Bhat, I.K. & Prakash, Ravi, 2009. "LCA of renewable energy for electricity generation systems--A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(5), pages 1067-1073, June.
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