ASEAN interconnection could yield $800bn savings – DNV

Decarbonising the energy supply across member states of the Association of South East Asian Nations (ASEAN) could see a reduction of $800 billion in costs through regional collaboration in power interconnectors, hydrogen networks and energy storage infrastructure, finds DNV.

According to a paper from independent risk management and assurance provider DNV, ASEAN Interconnector Study: Taking a Regional Approach to Decarbonization, collaborative efforts between ASEAN member countries can yield substantial cost savings, optimise material resource utilisation and reduce the land footprint required for renewable energy development.

DNV says that the primary advantage of such regional cooperation lies in minimising the levels needed of renewable generation and energy storage to attain net zero, thanks to the enhanced utilisation and sharing of resources from regions abundant in renewable potential.

In their study, DNV models three scenarios for a decarbonised ASEAN power sector by 2050.

1 – In the individual approach, countries try to fully decarbonise alone from their own resources.

2 – In the moderate interconnection, based on the ‘ASEAN RE Target Case’ in the ASEAN Interconnection Masterplan Study Phase III, there are several cross-border power interconnectors but with limited transmission capacity and no hydrogen network.

Have you read:
BritNed launches ‘first of its kind’ interconnector auction
US DOE releases new transmission interconnection roadmap

3 – Regional cooperation, the third DNV scenario, envisages full, unconstrained resource-sharing between countries, involving power interconnectors and hydrogen networks.

Specifically, estimates DNV in the study, regional cooperation can cut $800 billion (approximately 11%) from the overall net present cost of ASEAN decarbonisation by 2050 compared with the individual approach, and $300 billion (approximately 5%) compared with moderate interconnection.

“Decarbonisation is a global challenge and ASEAN countries should not address this individually. With increased cooperation and resource sharing we can increase the speed of the energy transition while reducing the cost to consumers and the environment,” said Mats de Ronde, team lead of energy markets & strategy APAC, energy systems at DNV.

Brice Le Gallo, vice president and regional director of APAC, energy systems at DNV, added: “Our study forecasts power flow between ASEAN countries and regions under different scenarios.

“A key finding is that moderate interconnection offers substantial cost savings and requires limited interconnectors, meaning less resources and investment. This can be seen as a moderate step towards decarbonization as key stakeholders recognize the benefits of cross-border interconnectors.”