The United States Trade and Development Agency (USTDA) has signed a $2 million grant agreement with Indonesia’s National Electricity Company (PLN). The purpose of the agreement is to conduct feasibility studies for the development of two cross-border electricity interconnections between Indonesia and Malaysia.
This commitment was formalized with the signing of the funding agreement between each parties on Wednesday (March 6). USTDA will assess the feasibility of power interconnections between Sumatra and the Malaysian Peninsula (Sumatra Connection) and between Kalimantan and Sabah in Malaysia (Kalimantan Connection).
This recent infrastructure is a component of the 18 cross-border interconnections identified within the ASEAN Interconnection Master Plan Study and can be built with financial support from USTDA. The project goals to enable efficient resource sharing, increase energy security and support the adoption of unpolluted energy policies and climate change goals in each countries.
Enoh Titilayo Ebong, acting director of USTDA, said on the signing ceremony in Arlington, Virginia, that this cross-border transmission infrastructure will contribute to achieving energy, climate and sustainable economy goals in Indonesia and Malaysia. Additionally, the project will provide universal advantages across ASEAN member countries and strengthen interconnections between energy ecosystems in Southeast Asia and industries within the United States.
These connections will enable Indonesia and Malaysia to share energy across their borders, helping to match energy supplies to local demand and fully exploit the available renewable energy potential. It hired Delphos International, Ltd., a consulting firm based in Washington, to advise on the PLN audit. They will work with Malaysian power corporations, Tenaga Nasional Berhad and Sabah Electricity Sdn. bhd.
The project can also be supported by the ASEAN Energy Center, which engages various stakeholders with interests in each countries. According to Darmawan Prasodjo, CEO of PLN, interconnection research plays a key role in increasing energy resilience at national and regional levels, in addition to ensuring shared prosperity within the Southeast Asian region.
Darmawan notes that this cooperation reflects the rebirth of ASEAN as a unified force that was previously divided. He believes that achieving such significant goals is barely possible through cooperation, as evidenced by the partnership between PLN and USTDA.
Darmawan acknowledges that interconnection projects pose challenges by way of various national policies, technical features and business considerations. However, he believes that these challenges will be overcome with unity amongst all parties involved.
Darmawan also notes that the collaboration with USTDA will provide PLN with access to international expertise and resources that can help PLN realize its vision of a more integrated and sustainable power grid across the ASEAN region.
