State-run think tank Philippine Institute for Development Studies (PIDS) believes that skepticism surrounding the feasibility of the Association of Southeast Asian Nations (ASEAN) Power Grid is likely to diminish over time, citing investments that could help address this years-long concern.

In an exclusive interview with Adoracion Navarro, senior fellow at PIDS, she shared that it is too early to doubt the feasibility of ASEAN energy integration.

“The Laos-Thailand-Malaysia-Singapore interconnection project has seen early successes as an example of a multilateral agreement on energy trading and infrastructure investments, so I believe the skepticism will diminish eventually,” Navarro cited an example to Manila Bulletin.

“Besides, it seems too early to be skeptical of the feasibility given that for the eastern part where we will be participating, that is, the BIMP-PIP (Brunei Darussalam-Indonesia-Malaysia-Philippines power integration project), the feasibility study is yet to be completed,” she added.

The BIMP energy initiative is designed to connect the power grids of the four countries to allow cross-border electricity trade and is expected to address regional power cooperation.

Last month, President Ferdinand Marcos Jr. called for an even greater “synergy, innovation, and political will” within the BIMP East ASEAN Growth Area (BIMP-EAGA).

The member countries are expected to focus on key economic movements such as the greater power interconnection, trade, investments, tourism, infrastructure development, as well as socio-cultural and educational exchange.

“For all we know, feasibility concerns can be addressed by adjusting the timing of investments and the nature or location of investments based on the current realities that the participating countries face,” Navarro said.

The PIDS senior fellow recalled earlier plans for the ASEAN grid link, which initially considered southern Mindanao as a potential connection point, with Palawan later emerging as another viable option.

“If one is to look at the renewable energy (RE) potential in Palawan relative to demand, it can be a net exporter given that its wind energy potential is more than 10 times its energy demand,” she said, emphasizing the need to bring in more solar and hydropower capacity.

“Part of the necessary preparations for interconnecting with other countries is transmission network upgrade within Palawan. The policy environment for large-scale battery storage systems should also be set, and the efforts to amend the Electric Power Industry Reform Act (EPIRA) provide an opportunity for doing so,” Navarro added.

In a set of comments on the proposed Senate bill aimed at strengthening the Energy Regulatory Commission (ERC) last December, PIDS emphasized the need to empower the commission to enforce the adoption of clean energy technologies, including smart grid systems, smart distribution networks, and the digital transformation of electric cooperatives.

“The policy environment for large-scale battery storage systems should also be set, and the efforts to amend the EPIRA provide an opportunity for doing so. We also have to review the presence, adequacy, and effectiveness of our policies for submarine cable protection zones or protection corridors, submarine crossing agreements, monitoring, regulatory regime, and liability rules, and then check if there are some things we need to fix,” she elaborated.

Moreover, Navarro highlighted the need to improve the energy sector’s rules and regulations, which goes beyond the focus on Palawan’s potential grid link or the BIMP.