Ingenieur July-Sept 2016 Ingenieur July-Sept 2016 | Page 62

INGENIEUR Multilateral electricity trading enhances the ASEAN Power Grid Development of the APAEC APAEC is a series of guiding policy documents to support the implementation of multilateral energy co-operation to advance regional integration and connectivity goals in ASEAN. It serves as a blueprint for better co-operation towards enhancing energy security, accessibility, affordability and sustainability under the framework of the AEC for the designated period. APAEC 2016-2025 has been developed by building on the progressive achievements of the previous plans which have been initiated since 1999. This laid the foundation for sound policy frameworks and implementation modalities for energy co-operation within ASEAN and for cooperative partnerships with relevant DPs and IOs. APAEC 2016-2025 will implement outcomebased strategies and action plans through the seven Programme Areas mentioned above. Extended over a longer period of 10 years, the plan will be implemented in two phases, namely Phase I: 2016-2020, which will focus on the shortto medium-term strategies required to achieve energy security co-operation and move towards greater connectivity and integration. A mid-term 6 60 VOL VOL67 55JULY-SEPTEMBER JUNE 2013 2016 review of Phase I will be conducted in 2018 when there will be a stock take of the progress of Phase I, which will guide ASEAN in charting the pathways and directives for Phase II (2021-2025). Global Energy Landscape Several key global trends could impact developments in ASEAN’s energy landscape. Firstly, the International Monetary Fund (IMF) forecasts that global growth will rise moderately at 1.6% per year for the Organisation for Economic Cooperation and Development (OECD) countries and 5.2% per year for emerging economies during the period 2015-2020. Secondly, geopolitical factors are increasingly influencing oil markets. Oil prices have fallen by more than 50% since mid-2014. The impact of this could translate into lower costs and support economic activities for oil importing countries including ASEAN. However, prolonged low energy prices may adversely impact global economic growth in the long term. Thirdly, new carbon schemes are being introduced in many countries to improve energy and environmental security. Finally, the rebound in oil and gas