ASEAN Centre for Energy to lead USTDA-funded study on PLN's Indonesia-Malaysia cross-border interconnection project

The ASEAN Centre for Energy (ACE) announces its leadership in an upcoming feasibility study to explore new cross-border power interconnections between Indonesia and Malaysia. This milestone initiative is made possible through a grant agreement between the U.S. Trade and Development Agency (USTDA) and PT Perusahaan Listrik Negara (Persero) (PLN) in Jakarta, Indonesia. The study, slated to begin in early 2024, will assess the feasibility of establishing interconnections between Sumatra and Peninsular Malaysia, as well as between Kalimantan and Sabah. These proposed interconnections, recommended by the ASEAN Interconnection Masterplan Study (AIMS III), are crucial for fostering a more integrated, sustainable, and affordable energy landscape across Southeast Asia.

Dr. Nuki Agya Utama, Executive Director of ACE, underscores the organization’s mission to accelerate interconnectivity and sustainability among ASEAN Member States. With USTDA’s support, ACE aims to assist PLN in identifying new opportunities for regional energy cooperation and contributing to a more secure and sustainable energy future for ASEAN.

Enoh T. Ebong, Director of USTDA, highlights the importance of enhancing energy sector cooperation among ASEAN member states and strengthening energy sector ties between the United States and Southeast Asia. The collaboration is seen as pivotal in facilitating regional energy integration and fostering mutual prosperity.

Darmawan Prasodjo, PhD, President Director of PT PLN (Persero), emphasizes the significance of the study for Indonesia and Malaysia. He views the exploration of these interconnections as critical for enhancing national and regional energy resilience and promoting economic development. Collaboration with ACE and USTDA enables leveraging international expertise and resources to realize the vision for a more connected and sustainable power network across ASEAN.

Led by ACE and supported by Delphos and Stantec (US consulting partners), the study will provide comprehensive insights into technical, economic, financing, and environmental aspects of the proposed interconnections. By identifying viable pathways for enhanced power exchange between Indonesia and Malaysia, the study aims to lay the groundwork for infrastructure projects that will strengthen energy security, facilitate economic development, and support the region’s transition to a more sustainable energy mix.