IDEAS home Printed from https://ideas.repec.org/p/era/wpaper/dp-2014-21.html
   My bibliography  Save this paper

Infrastructutre Investments for Power Trade and Transmission in ASEAN+2: Costs, Benefits, Long-Term Contracts, and Prioritised Development

Author

Listed:
  • Yanfei LI

    (Economic Research Institute for ASEAN and East Asia (ERIA))

  • Youngho CHANG

    (Division of Economics, Nanyang Technological University)

Abstract

This study establishes a system approach in assessing the financial viability of power infrastructure investment for the Greater Mekong Subregion (GMS) and ASEAN Power Grid (APG) in the ASEAN+2 (ASEAN plus China and India) region. It aims to identify the financial and finance-related institutional barriers of implementing such regional power interconnectivity. A whole-grid/system simulation model is built to assess both their financial and commercial viability, which implies profitability for investors and bankability for financiers of new transmission projects with the optimised pattern of power trade. The study also determines the optimised planning of new transmission capacities. Results show that the existing planning of power transmission infrastructure in the region, so-called APG+, stands as a commercially and financially viable plan. However, there is room for improvement in the planning in terms of timing, routes, and capacity of the cross-border transmission lines. The study also recommends that GMS-related projects should be prioritised.

Suggested Citation

  • 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).
    • Handle: RePEc:era:wpaper:dp-2014-21
    as

    Download full text from publisher

    File URL: http://www.eria.org/ERIA-DP-2014-21.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Paul Joskow & Jean Tirole, 2005. "Merchant Transmission Investment," Journal of Industrial Economics, Wiley Blackwell, vol. 53(2), pages 233-264, June.
    2. Peter Russ & Patrick Criqui, 2007. "Post-Kyoto CO2 emission reduction : the soft landing scenario analysed with POLES and other world models," Post-Print halshs-00078489, HAL.
    3. Russ, Peter & Criqui, Patrick, 2007. "Post-Kyoto CO2 emission reduction: The soft landing scenario analysed with POLES and other world models," Energy Policy, Elsevier, vol. 35(2), pages 786-796, February.
    4. Youngho Chang & Yanfei Li, . "Power Generation and Cross-border Grid Planning for the Integrated ASEAN Electricity Market: A Dynamic Linear Programming Model," Chapters, in: Yanrui Wu & Xunpeng Shi & Fukunari Kimura (ed.), Energy Market Integration in East Asia: Theories, Electricity Sector and Subsidies, chapter 4, pages 59-82, Economic Research Institute for ASEAN and East Asia (ERIA).
    5. Kristiansen, T. & Rosellón, J., 2010. "Merchant electricity transmission expansion: A European case study," Energy, Elsevier, vol. 35(10), pages 4107-4115.
    6. Messner, Sabine & Schrattenholzer, Leo, 2000. "MESSAGE–MACRO: linking an energy supply model with a macroeconomic module and solving it iteratively," Energy, Elsevier, vol. 25(3), pages 267-282.
    7. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. Ahmed, Tofael & Mekhilef, S. & Shah, Rakibuzzaman & Mithulananthan, N., 2017. "Investigation into transmission options for cross-border power trading in ASEAN power grid," Energy Policy, Elsevier, vol. 108(C), pages 91-101.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li, Yanfei & Chang, Youngho, 2015. "Infrastructure investments for power trade and transmission in ASEAN+2: Costs, benefits, long-term contracts and prioritized developments," Energy Economics, Elsevier, vol. 51(C), pages 484-492.
    2. repec:era:chaptr:2013-rpr-29-07 is not listed on IDEAS
    3. Haller, Markus & Ludig, Sylvie & Bauer, Nico, 2012. "Bridging the scales: A conceptual model for coordinated expansion of renewable power generation, transmission and storage," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(5), pages 2687-2695.
    4. Haller, Markus & Ludig, Sylvie & Bauer, Nico, 2012. "Decarbonization scenarios for the EU and MENA power system: Considering spatial distribution and short term dynamics of renewable generation," Energy Policy, Elsevier, vol. 47(C), pages 282-290.
    5. Luis Sarmiento & Thorsten Burandt & Konstantin Löffler & Pao-Yu Oei, 2019. "Analyzing Scenarios for the Integration of Renewable Energy Sources in the Mexican Energy System—An Application of the Global Energy System Model (GENeSYS-MOD)," Energies, MDPI, vol. 12(17), pages 1-24, August.
    6. Ochoa, Camila & van Ackere, Ann, 2015. "Winners and losers of market coupling," Energy, Elsevier, vol. 80(C), pages 522-534.
    7. Criqui, P. & Mima, S. & Menanteau, P. & Kitous, A., 2015. "Mitigation strategies and energy technology learning: An assessment with the POLES model," Technological Forecasting and Social Change, Elsevier, vol. 90(PA), pages 119-136.
    8. Bollen, Johannes, 2015. "The value of air pollution co-benefits of climate policies: Analysis with a global sector-trade CGE model called WorldScan," Technological Forecasting and Social Change, Elsevier, vol. 90(PA), pages 178-191.
    9. Vicki Duscha & Katja Schumacher & Joachim Schleich & Pierre Buisson, 2014. "Costs of meeting international climate targets without nuclear power," Climate Policy, Taylor & Francis Journals, vol. 14(3), pages 327-352, May.
    10. Patrick Criqui & Constantin Ilasca & Emmanuel Prados, 2014. "National Soft Landing CO2 trajectories under global carbon budgets," Working Papers halshs-00980101, HAL.
    11. Shigeru Kimura & Yanfei Li, 2016. "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, July.
    12. Anil Markandaya & Mikel Gonzalez-Eguino & Patrick Criqui & Silvana Mima, 2014. "Low climate stabilisation under diverse growth and convergence scenarios," Post-Print halshs-00872630, HAL.
    13. Mendoza Beltran, Angelica & den Elzen, Michel G.J. & Hof, Andries F. & van Vuuren, Detlef P. & van Vliet, Jasper, 2011. "Exploring the bargaining space within international climate negotiations based on political, economic and environmental considerations," Energy Policy, Elsevier, vol. 39(11), pages 7361-7371.
    14. Ahmed, Tofael & Mekhilef, S. & Shah, Rakibuzzaman & Mithulananthan, N., 2017. "Investigation into transmission options for cross-border power trading in ASEAN power grid," Energy Policy, Elsevier, vol. 108(C), pages 91-101.
    15. Markandya, A. & González-Eguino, M. & Criqui, P. & Mima, S., 2014. "Low climate stabilisation under diverse growth and convergence scenarios," Energy Policy, Elsevier, vol. 64(C), pages 288-301.
    16. Kamiński, Jacek, 2012. "The development of market power in the Polish power generation sector: A 10-year perspective," Energy Policy, Elsevier, vol. 42(C), pages 136-147.
    17. Fleiter, Tobias & Worrell, Ernst & Eichhammer, Wolfgang, 2011. "Barriers to energy efficiency in industrial bottom-up energy demand models--A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(6), pages 3099-3111, August.
    18. Yang, Chunmeng & Bu, Siqi & Fan, Yi & Wan, Wayne Xinwei & Wang, Ruoheng & Foley, Aoife, 2023. "Data-driven prediction and evaluation on future impact of energy transition policies in smart regions," Applied Energy, Elsevier, vol. 332(C).
    19. Wolf-Peter Schill & Jonas Egerer & Juan Rosellón, 2015. "Testing regulatory regimes for power transmission expansion with fluctuating demand and wind generation," Journal of Regulatory Economics, Springer, vol. 47(1), pages 1-28, February.
    20. Youngho Chang & Justin Lee & Wei Xiang Ang & Jing Yi Chua, 2019. "Energy Market Integration in ASEAN: Locational Marginal Pricing and Welfare Implications," Journal of Asian Economic Integration, , vol. 1(1), pages 48-72, April.
    21. Yanrui Wu, 2016. "Electricity Market Integration in ASEAN: Institutional and Political Barriers and Opportunities," Chapters, in: Yanfei Li & Shigeru Kimura (ed.), Achieving an Integrated Electricity Market in Southeast Asia: Addressing the Economic, Technical, Institutional, and Geo-political Barriers, chapter 4, pages 109-125, Economic Research Institute for ASEAN and East Asia (ERIA).

    More about this item

    Keywords

    cross-border power trade; power infrastructure; financial viability; commercial viability;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:era:wpaper:dp-2014-21. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ranti Amelia (email available below). General contact details of provider: https://edirc.repec.org/data/eriadid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.