SINGAPORE – The realisation of the Asean regional power grid, envisioned as a way for countries to share renewable energy, would require not just the development of energy generation projects but also suitable grid infrastructure.

       But on Oct 25, speakers at a panel discussion at the Singapore International Energy Week (Siew) said such transmission infrastructure often does not attract as much private-sector investments as renewable energy projects.

       At the discussion focusing on innovative solutions for decarbonisation investments, the panellists said that multilateral banks or philanthropic organisations can help to plug this financing gap. Multilateral banks include the likes of the World Bank and Asian Development Bank.

       PwC’s Asia-Pacific infrastructure leader, Ms Jennifer Tay, said :“There’s no lack of money sitting at the generation side wanting to develop renewable energy projects. But developing these renewable energy projects requires it to be able to get connected to the customers.”

       Ms Tay added that if renewable energy project developers connect to their customers, having to put in additional funds to build their own transmission capabilities can put them off investing in generation capacity.

       One of the biggest risks for renewable energy developers is curtailment, said Ms Tay, referring to action that reduces the amount of electricity generated to maintain the balance between supply and demand.

       But it is also challenging for the private sector to get involved in grid development, she said, pointing to how many governments retained control over grid operations.

       “The beauty of having multilaterals or even philanthropic money in the financing mix is that you are seen as more neutral and apolitical. Your ability to influence the policymaking in the market structure changes and to invest directly becomes a lot less sensitive,” said Ms Tay.

       The other panellists in the discussion, which touched on the role of public-private partnerships in attracting private-sector investment in clean energy projects and de-risking mechanisms for decarbonisation projects, included DBS Bank’s global head of energy, renewables and infrastructure, Mr Kelvin Wong; the World Bank’s practice manager for energy and extractive global practice, Mr Jie Tang, and the regional director for Asia at international non-governmental organisation SEforALL, Ms Jacqueline Lam.

       The session was moderated by The Straits Times senior columnist Lin Suling.

       During the discussion, the panellists also touched on the importance of regional-level planning in order for the Asean power grid to materialise.

       “You need to combine national planning with regional cross-border power connectors. Unless you get the domestic grid to either provide or accept the regional power flow, (the regional grid) will not happen,” said Mr Tang.

       The Asean regional grid, which has been in the works for decades, was one of the key points of discussion during this year’s Siew conference.

       The project made progress with the 2022 launch of the Laos-Thailand-Malaysia-Singapore electricity import pilot, a pathfinder project for the Asean grid. But according to a Reuters report in July 2024, the project hit a snag due to disagreements over how the energy will be transmitted through Thailand and Malaysia, and the quantity of power to be purchased.

       Findings of a US-Singapore feasibility study on regional energy connectivity presented on Oct 24 during the Siew conference found that the Asean power grid would accrue other benefits beyond green electricity, such as job creation and investments for the energy sector.

       But SEforALL’s Ms Lam pointed out that when it comes to effort to reduce the release of planet-warming emissions, the power sector also plays an important role in helping to decarbonise other sectors.

       “The power sector powers all of the other economic activities. It powers the decarbonisation of transport, it powers clean cooking, and other areas like healthcare and education,” she said.

       Private-sector investments in renewable energy projects are key, but highlighting the “intersectionality” of how the energy sector relates to other fields is also important.

       “Philanthropies have been really key in sectors such as healthcare, education, clean water and sanitation, and bringing them into the energy conversation,” Ms Lam said, citing how food losses of up to 30 per cent have been recorded in off-grid agricultural areas because cold chain solutions, such as refrigeration, were not available.