Sarawak's Role in ASEAN Power Grid Decarbonisation
Key Ideas
  • Sarawak's involvement in the ASEAN Power Grid aims to supply low-carbon hydropower to displace fossil fuel generation across Southeast Asia.
  • The state plans to increase its renewable energy capacity to 15 gigawatts by 2035, including hydropower, solar, and hydrogen deployment, positioning Sarawak as a regional energy anchor.
  • Challenges ahead include complex project executions across multiple jurisdictions, requiring coordination among governments, regulators, and industry players.
  • The investment required for the APG vision is estimated at US$764 billion, with the ASEAN Power Grid Finance Facility Framework expected to be launched to support cross-border energy infrastructure financing.
The Sarawak-linked segment of the ASEAN Power Grid (APG) is set to play a crucial role in regional decarbonisation efforts by supplying low-carbon hydropower to replace fossil fuel generation in Southeast Asia. Prime Minister Datuk Seri Anwar Ibrahim highlighted Sarawak's potential to become the main energy hub for Malaysia and ASEAN, emphasizing the state's rich energy resources including hydropower, gas, and hydrogen. Sarawak Energy's 2035 Strategic Plan aims to nearly triple the state's renewable energy capacity to 15 gigawatts by 2035 through continued hydropower development, solar scale-up, and hydrogen deployment. This ambitious target, if achieved with the right enablers, can significantly enhance Sarawak's export capacity and domestic energy security. The article also addresses the challenges involved in executing such projects across multiple jurisdictions, such as land acquisition, environmental clearances, maritime regulations, and harmonisation of grid codes. Coordination among governments, regulators, and industry players is deemed critical for successful implementation. Despite the heavy reliance on fossil fuels in ASEAN, the regional power grid offers a long-term solution for emissions reduction if infrastructure, regulation, and markets are aligned effectively. The APG vision necessitates a substantial investment of US$764 billion for power generation and transmission infrastructure, with plans to launch the ASEAN Power Grid Finance Facility Framework to support financing. Looking ahead, success in Sarawak's endeavors could serve as a blueprint for other sub-regional linkages in ASEAN. Lessons from Europe's ENTSO-E network and China's Belt and Road Energy Corridor could guide the region in terms of coordination, harmonisation, and investor confidence. Additionally, climate finance instruments like green bonds, blended finance, and carbon-linked mechanisms are expected to aid in funding the clean energy transition. As the APG progresses, Sarawak's hydropower-driven export model is anticipated to drive the region's energy landscape towards sustainability and resilience.
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