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Study on Effective Power Infrastructure Investment through Power Grid Interconnections in East Asia

Kazutaka Fukasawa, Ichiro Kutani and Yanfei Li

in Books from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: Dense cross-border power grid connections can benefit the ASEAN region through maximum use of untapped resources to generate power and stabilise power supply with low investment for power stations. This study aims to support existing initiatives--ASEAN Power Grid and Greater Mekong Subregion Power Master Plan--by quantitatively showing possible economic and environmental benefits of such power grid connections. This study selected specific routes from candidate international connection lines extracted from a FY2013 study on the same subject, and carried out preliminary planning and cost estimation for said selected routes and cross-border line per kilowatt-hour. The results indicate that although cross-border connection lines are capital intensive, the attainable benefits seem large enough to rationalise the investment. This study drew policy implications on how to resolve the remaining institutional barriers.

Date: Written 2015-12 Originally published 2015-12.
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