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
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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