Agreement at the Senior Officials Meeting on Energy of ASEAN + 3

22/07/2010

In the afternoon of 21st July, Senior Officials Meeting on Energy of ASEAN + 3 passed the draft agenda and the content of cooperation of AMEM +3 in preparation for the official opening of the 28th ASEAN Meeting of Energy Ministers, on 22nd July.

After three days of meetings, ASEAN senior officials in energy discussed the cooperation agreement on energy with Russian, American, Japanese, Korean, and Chinese partners.

Deputy Minister of Industry and Trade, Mr. Do Huu Hao said that ASEAN is implementing two major programs to connect power grid and gas pipelines among members. This initiative has been agreed upon but the implementation needs similar levels of development among countries.

Currently, many ASEAN countries still lack power. To connect the grids among ASEAN countries is an issue that draws special attention from member countries, in order to optimize the power generation sector and develop indigenous energy resources.

The ASEAN members have very different grid systems: while the systems of ASEAN 6 countries are more developed, ASEAN 4 countries’ are mostly old and unstable.

Grids connection is facing many difficulties, especially technical problems. Because if the voltage is not stable, frequent power outages, or 220 kV is unsecure, these will seriously affect the trans-national power grid.

The grid connection among countries in the region will bring huge economic results for both investors and consumers, creating opportunities to expand power market, stimulating investment, especially ensuring energy security for each country.

"Through the meetings, the ASEAN countries have reached agreement in grid connection, however the gap between countries is still very large", Deputy Minister, Mr. Do Huu Hao said.

Thailand currently has connected and sold 220-kV electricity to Laos. Ministry of Industry and Trade is planning to connect the 500kW line to Vietnam from Laos and Cambodia. When this line is completed, it will connect Vietnam-Laos grid and simultaneously Thailand, Myanmar and later other ASEAN countries.

Deputy Minister Do Huu Hao said that Vietnam has participated in ASEAN power grid for a long time, but mainly in connection with China, Laos, and Cambodia.

Vietnam has conducted the grid connection with Cambodia and Laos through 220 kV lines. In the framework of the meeting, according to Deputy Minister - Mr. Do Huu Hao, in the future, after completing hydropower plants in Laos, Vietnam will buy electricity from these two countries.
"We will build an ASEAN community with easier grid connection; citizens of one country can even buy power from other countries if it is cheaper," he added.

In fact, electricity prices differ from country to country. In Vietnam, it is only 5.3 cents per kilowatt, in Thailand, it is about 8 cents per kilowatt, in Philippines, it is about 14-15 cents per kwh, while in Cambodia, it is up to 18-19 cents / kWh.

"At the meetings, a common electricity price in ASEAN cannot be mentioned," said Deputy Minister – Mr. Do Huu Hao. "So the agreement on the electricity price is only held bilaterally, and there cannot be a common electricity price level for ASEAN countries."

The participants in SOME 28 all wish to have comprehensive cooperation with ASEAN in energy such as nuclear power development, training human resources, construction and development of research centers on energy, etc.

As planned, Russia will help Vietnam build its first nuclear power station. Then they will help build a training and research center in Da Lat on nuclear energy to replace the old nuclear reactor in Da Lat.

In the near future, the U.S. and Vietnam will sign a cooperation agreement on nuclear energy for peaceful purposes. Japan and South Korea will also help Vietnam in the research of nuclear power.
Mr. Soichiro Seki, Energy Advisor for international negotiations, the Ministry of Economy, Trade, and Industry of Japan said that process and action plan for the program on energy efficiency and conservation are also presented by senior officials of Japan at the 14th Conference of East Asia in Energy Cooperation.

At the 14th East Asia - Energy Cooperation Task Force (EAS-ECTF), the delegates also discussed and agreed the draft of Joint Ministerial Statement (JMS) in preparation for The 4th East Asia Ministerial Conference.

By Phương Anh

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