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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.

Suggested Citation

  • Youngho Chang & Yanfei Li, . "Power Generation and Cross-border Grid Planning for the Integrated ASEAN Electricity Market: A Dynamic Linear Programming Model," Chapters, Economic Research Institute for ASEAN and East Asia (ERIA).
  • Handle: RePEc:era:chaptr:2011-rpr-17-03
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. Yu, Xiaojiang, 2003. "Regional cooperation and energy development in the Greater Mekong Sub-region," Energy Policy, Elsevier, vol. 31(12), pages 1221-1234, September.
    4. 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.
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    Cited by:

    1. Mishra, Vinod & Smyth, Russell, 2014. "Convergence in energy consumption per capita among ASEAN countries," Energy Policy, Elsevier, vol. 73(C), pages 180-185.
    2. Shigeru Kimura & Yanfei Li, . "Achieving an Integrated Electricity Market in Southeast Asia: Addressing the Economic, Technical, Institutional, and Geo-political Barriers," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 2015-rpr-16 edited by Yanfei Li & Shigeru Kimura.
    3. Farnoosh, Arash & Lantz, Frederic & Percebois, Jacques, 2014. "Electricity generation analyses in an oil-exporting country: Transition to non-fossil fuel based power units in Saudi Arabia," Energy, Elsevier, vol. 69(C), pages 299-308.
    4. Huber, Matthias & Roger, Albert & Hamacher, Thomas, 2015. "Optimizing long-term investments for a sustainable development of the ASEAN power system," Energy, Elsevier, vol. 88(C), pages 180-193.
    5. Yanfei LI & Youngho CHANG, 2014. "Infrastructutre Investments for Power Trade and Transmission in ASEAN+2: Costs, Benefits, Long-Term Contracts, and Prioritised Development," Working Papers DP-2014-21, Economic Research Institute for ASEAN and East Asia (ERIA).
    6. Yanrui Wu, . "Electricity Market Integration in ASEAN: Institutional and Political Barriers and Opportunities," Chapters, Economic Research Institute for ASEAN and East Asia (ERIA).
    7. Chang, Youngho & Lee, Justin & Ang, Wei Xiang & Chua, Jing Yi, 2017. "Energy Market Integration in the ASEAN: Economics, Technology and Welfare Implications," RIEI Working Papers 2017-10, Xi'an Jiaotong-Liverpool University, Research Institute for Economic Integration.
    8. Yanfei Li & Youngho Chang & Choo Fook Hoong & Swati Sharma, . "Business Model and Market Design for ASEAN Electricity Market Integration: Principles, Practicalities, and Conditions for Success," Chapters, Economic Research Institute for ASEAN and East Asia (ERIA).
    9. Chang, Youngho & Li, Yanfei, 2015. "Renewable energy and policy options in an integrated ASEAN electricity market: Quantitative assessments and policy implications," Energy Policy, Elsevier, vol. 85(C), pages 39-49.

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