APAEC 2010-2015 Drafting Committee Meeting 12-13 March 2009 Bangkok, Thailand

1. APAEC 2010-2015 Drafting Committee Meeting12-13 March 2009Bangkok, Thailand

2. BACKGROUND ON APAEC and APG • APGCC Chairman and HAPUA Secretariat are HAPUA representatives in the Drafting Committee for APAEC 2010-2015 • APAEC Drafting Committee (ADC) has had 2 meetings • 1st ADC Meeting 10 Jul 2008 (Bogor, Indonesia) • 2nd ADC Meeting 20-22 Oct 2008 (Bangkok, Thailand),and • The 3rd ADC Meeting is scheduled from 12-13 March 2009 in Bangkok • APGCC Chairman seeks the consent of HAPUA WC members to comment on the propose topics that need to be deliberated in the coming ADC meeting: • The Elaboration of Strategies and Action for APAEC 2010-2015 • The Lesson Learnt from the Previous APAEC 2004-2009

3. Overall Objective of APAEC APAEC 2010-2015 OBJECTIVE APAEC 2004-09 OBJECTIVE To enhance sustainable energy supply through accelerated implementation of interconnecting arrangements for electricity and natural gas, judicious utilization of coal and renewable energy sources including nuclear energy as an option, and promotion of energy efficiency and conservation to stimulate regional economic growth and environmental protection. This plan covers the energy component of the Hanoi Plan of Action which directs the ASEAN towards the following objectives for 1999-2004: (1) to ensure security and sustainability of energy supply, efficient utilization of natural energy resource in the region and the rational management of energy demand, with due consideration of the environment; and (2) to institute the policy framework and implementation modalities by 2004 for the early realization of the Trans-ASEAN energy networks covering the ASEAN Power Grid and the Trans-ASEAN Gas Pipeline Projects as a more focused continuation of the medium- term programmed of action (1995-1999).

4. 1.0 LESSON LEARNT FROM EXISTING OBJECTIVE & STRATEGIES PROGRAM AREA NO 1 - ASEAN POWER GRID • OBJECTIVE: • To facilitate the implementation of the ASEAN Interconnection Master Plan • To further the establishment of policy framework of the electricity networks comprising the APG. • STRATEGIES: • Develop the ASEAN Power Grid by Interconnection • On going with three (3) interconnection already in operation and 3 more to be commissioned. • OPTIMISE/MAXIMISE THE GENERATION VIS A VIS INDEGENEOUS RESOURCES • Post a question to ASEAN members – what is the existing policy with regards to generation resources optimization? • Invite private sector participation to develop the generation identified in the AIMS • Individual countries have accepted IPPs participation in building the power plants. • Conduct feasibility studies on identified interconnection • Feasibility Studies is an ongoing exercise inline with APG action plan. 4

5. 2.0 Lesson Learnt

6. APAEC 2010 - 2015 ELABORATE ON THE PROPOSED STRATEGIES OF APG • OBJECTIVE: • Facilitate And Expedite The Implementation Of The APG • Further Harmonizing All The Aspect Of Technical Standard And Operating Procedure As Well As Regulatory Framework • STRATEGIES: • ACCELERATE THE INTERCONNECTION PROJECT & SUB-SECTOR STUDY • Setting up APGCC, Task Forces on sub-sector • Review AIMS and finalize feasibility studies • Address barriers to interconnection • OPTIMISE/MAXIMISE THE GENERATION VIS A VIS INDEGENEOUS RESOURCES • Develop local resources at site and export as energy to meet local and regional requirement • Supply-demand balance (supply security interdependency) • Sharing utilization of nuclear power • ENCOURAGE ASEAN RESOURCES PARTICIPATION TO DEVELOP GENERATION, TRANSMISSION, DISTRIBUTION SYSTEM WITHIN THE REGION • Enhancing the role of multilateral finance institutions (e.g. ADB) • Strengthening policy of AFTA for energy sector • Develop the policy to encourage ASEAN resources participation i.e. EPC & Turnkey, IPPs, Local/Regional/International expertise, contractors , developers and products 6