BIMP EAGA POWER & & E ENERGY I Y INFRASTRUCTURE CLUSTER - PowerPoint PPT Presentation

BIMP – EAGA POWER & & E ENERGY I Y INFRASTRUCTURE CLUSTER (P (PEIC) 1

PRESENTATION CONTENT Part 1 : BIMP –EAGA overviews Ø Part 2: PEIC Overviews Ø Part 3: Trans Borneo Power Grid Sarawak – W Kalimantan Ø Interconnection Project Part 4 : Benefits & Opportunities for Cooperation Ø Part 5 : Challenges and Constrains Ø Part 6 : Recommendations Ø 2

PRESENTATION CONTENT Part 1 : BIMP –EAGA Overviews Ø Part 2: PEIC Overviews Ø Part 3: Trans Borneo Power Grid Sarawak – W Kalimantan Ø Interconnection Project Part 4 : Benefits & Opportunities for Cooperation Ø Part 5 : Challenges and Constrains Ø Part 6 : Recommendations Ø 3

BIMP-EAGA PHILIPPINES Trade Palawan LAND AREA : 1.6 million sq. km Tourism POPULATION : 57.5 million Mindanao Investments BRUNEI DARUSSALAM Sabah Labuan INDONESIA East Kalimantan MALAYSIA Sarawak North Sulawesi North Maluku Gorontalo Maluku Irian Jaya West Kalimantan Central Sulawesi Central South Kalimantan Kalimantan Southeast Sulawesi This imag South Sulawesi e

The BIMP-EAGA IB in a Nutshell: Strategic, Operational and Results Framework Goal: To narrow the development gap across & within EAGA member countries as well as across the ASEAN-6 countries Objectives: >Increase Trade >Increase Tourism >Increase Investments Strategic Pillar 4: Strategic Pillar Strategic Strategic Strategic Pillar 1: Environment 2: Connectivity Pillar 3: Pillar 5: • Sustainable Food Basket • Infrastructure Tourism • Socio-Cultural Management of Development • Community- and Education Critical Ecosystems • Air, Sea, & Land • Food Security Human Resource based • Climate Change Skills and • Export Services Ecotourism • Clean and Green Technical Development • Power • Marketing and Production Education • Sustainable Interconnection & Promotion Technologies Education Livelihood Renewable Energy • Transboundary Socio-cultural • ICT issues • Environment • Trade Facilitation mainstreaming Rolling Pipeline: Programs/Projects/Policy Support/Activities/Events Results Monitoring (Outputs and Outcomes)

PRESENTATION CONTENT Part 1 : BIMP –EAGA overviews Ø Part 2: PEIC Overviews Ø Part 3: Trans Borneo Power Grid Sarawak – W Kalimantan Ø Interconnection Project Part 4 : Benefits & Opportunities for Cooperation Ø Part 5 : Challenges and Constrains Ø Part 6 : Recommendations Ø 7

PART 2 : PEIC Overviews Vision To integrate the energy sector in BIMP EAGA sub region towards the achievement of the sustainable utilization of energy among member states to derive the maximum mutual benefits for the people in BIMP EAGA Mission To achieve the vision with the co-benefits of sustainable energy management, energy resource management, improved energy security, reduced energy costs and energy infrastructure development. 8

Objective Ø Strengthen cooperation and coordination among the EAGA stakeholders in accelerating renewable energy development, promoting energy efficiency and conservation, ensuring energy supply security and sustainability in the subregion. Ø Provide strategic directions in the identification and prioritization of high- impact flagship projects to facilitate project implementation and fast-track the sub-region’s goal of infrastructure and economic development; and, Ø Provide the conducive environment that would encourage private sector investments. 9

Strategic Directions and Focus Areas Ø Strengthen BIMP-EAGA as a dynamic, resilient and cohesive sub-region for the well- being of the Member States’s people with a balance given among economic growth, maximize utilization of available energy resources, social development and eco-system/ environmental conservation Ø Enhance cooperation and coordination, as well strengthen initiatives in pursuit of power connectivity and other development initiatives that would provide reliable and cheaper power supply within the sub-region; Ø Intensify participation and level of awareness of the public and private sector, particularly on the investment opportunities in power generation within the sub-region; Ø Develop approaches in generating active involvement of the Private Sector and State/Local Government Units; and Ø Lobby for national government support to encourage power/energy-related investments 10

Latest Amend Aug 2014 - 2 nd PEIC Meeting Lead Country (MALAYSIA 2013-2015) CHAIRMAN And Deputy Chairman will be Philippines, referring to TOR item VI B) 1 and 2. DEPUTY CHAIRMAN Malaysia Philippines Countries members Indonesia Brunei BEBC Representative from Ministry of relevant ministries, State Public Utilities Department Government of Brunei, Ministry of Sarawak Energy of Energy BEBC Indonesia, Malaysia, Energy and Department Chairman State Planning Philippines, ADB and Mineral in Prime National Grid Unit (Sarawak) Respective BEBC . Resources Minster's Corporation BEBC Country Referring to TOR item VI A (to be Sabah Office of Directors Economic 1,2&3 advise) (EDPMO) Philippines Planning Unit Indonesia Brunei Malaysia Philippines Project Proponents of member countries. Department of Sarawak PT PLN Referring to TOR VI A2 Energy, Energy (Persero) Department of Mindanao Berhad Electricity Field Office Supply Sabah National Electricity Transmission Sdn. Bhd. Corporation Non-core members via invitation basis 11 Referring to TOR VI A 4

PRESENTATION CONTENT Part 1 : BIMP –EAGA overviews Ø Part 2: PEIC Overviews Ø Part 3: Trans Borneo Power Grid Sarawak – W Ø Kalimantan Interconnection Project Part 4 : Benefits & Opportunities for Cooperation Ø Part 5 : Challenges and Constrains Ø Part 6 : Recommendations Ø 12

PART 3 : Trans Borneo Power Grid Sarawak – W Kalimantan Interconnection Project Project Status Trans Borneo Power Grid Sarawak – W Kalimantan Schedule to complete by Q1 Interconnection Project 2016 13

• The interconnection is connected via Ø Mambong 275/132kV Substation at Sarawak Ø Bengkayang 275/150kV Substation at West Kalimantan 14

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PRESENTATION CONTENT Part 1 : BIMP –EAGA overviews Ø Part 2: PEIC Overviews Ø Part 3: Trans Borneo Power Grid Sarawak – W Kalimantan Ø Interconnection Project Part 4 : Benefits & Opportunities for Cooperation Ø Part 5 : Challenges and Constrains Ø Part 6 : Recommendations Ø 17

PART 4 : Benefits & Opportunities Cooperation Ø Economic Collaboration Ø Enhance security of supply by sharing spinning reserves Ø As catalyst of future potential interconnectors 18

PRESENTATION CONTENT Part 1 : BIMP –EAGA overviews Ø Part 2: PEIC Overviews Ø Part 3: Trans Borneo Power Grid Sarawak – W Kalimantan Ø Interconnection Project Part 4 : Benefits & Opportunities for Cooperation Ø Part 5 : Challenges and Constrains Ø Part 6 : Recommendations Ø 19

PART 5 : Challenges & Constraints CHALLENGES Ø Geographical terrain Ø Different levels of industrial development Ø Jurisdiction limits between countries Ø Funding (e.g., national priorities vs EAGA priorities) 20

POLICY/REGULATORY Ø Differences in regulatory environment (e.g., subsidies, decentralization) Ø Differences in technical standards (e.g., environment, electricity codes) Ø Differences in market structures Ø Regulatory approvals of energy projects (e.g., no guarantee on energy projects) Ø Policy differences (e.g., national security vs energy security) 21

INSTITUTIONAL § Private sector engagement - Energy projects require huge capital investments (funding capacity issues) - Regulatory approvals of energy projects (e.g., preference of local contractors) - Not attractive financial incentives and tariff rates § Institutions in place: BIMP-EAGA, HAPUA, APGCC § Funding sources in place: Member Countries, ADB, JICA, JBIC 22

PRESENTATION CONTENT Part 1 : BIMP –EAGA overviews Ø Part 2: PEIC Overviews Ø Part 3: Trans Borneo Power Grid Sarawak – W Kalimantan Ø Interconnection Project Part 4 : Benefits & Opportunities for Cooperation Ø Part 5 : Challenges and Constrains Ø Part 6 : Recommendations Ø 23

PART 6 : Recommendations Institutional - Harmonize with the other initiatives and to share information and data to maximize available resources (ASEAN, GMS, HAPUA…) Policy& Regulation – to continue study and to enhance the cooperation among regulators Technologies – To further enhance the study on the latest technology to be applied. 24

THANK YOU 25