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

Youngho Chang () and Yanfei Li ()

Chapter 3 in Energy Market Integration in East Asia: Theories, Electricity Sector and Subsidies, pp 37-58 from Economic Research Institute for ASEAN and East Asia (ERIA)

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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