SINGAPORE—The Philippines plans to sign a bilateral interconnection agreement with Malaysia to explore connecting to the ASEAN Power Grid (APG), a regional initiative aimed at boosting energy security and renewable energy expansion across Southeast Asia.
The agreement would pave the way for the Philippines to link its electricity system to Malaysia and subsequently to the wider region, according to Energy Secretary Sharon Garin in a panel discussion at the Singapore International Energy Week.
The APG seeks to interconnect electricity systems across ASEAN member states for energy security, the expansion of renewable energy and economic integration.
Garin noted the extensive preparations needed for grid integration, which will cover technical, financial, legal and governmental aspects.
“So many things have to be in place for it to be functional,” Garin said, adding that determining power rates alone is not an easy task. She expressed hope for the project but acknowledged, “it will not be something that will happen in my time.”
Garin also cited the critical role of government policies in achieving energy transition goals and attracting foreign investment.
“The Philippines is second in the world and most attractive for renewable energy investments,” she said.
“And why is that? It’s because we have been very progressive in policies,” said Garin.
She said investments require the right policies that are responsive enough to keep up with the energy momentum.
The Philippines has managed to attract significant investor interest, securing 16 gigawatts (GW) of capacity from pumped storage and solar power projects through the Green Energy Auction Program by implementing favorable policies.
“Now we’re auctioning three point three gigawatts of offshore wind by the end of the year,” Garin said.
“If you have the right policies, the private sector can make it happen,” she said.
Garin said that governments should lead by providing consistent policies and the right framework to instill confidence in the industry to invest.
