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Asean Affairs   15 July  2011

An Emerging 'Pan-Asian Energy Infrastructure'

By  David Swartzemtruber

 
AseanAffairs     15 July 2011

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By 2050, Asia can be connected by an electricity, natural gas and communications network.

This “Pan-Asian Energy Infrastructure” will deepen regional energy trading and will encourage low-emission energy investment. It will increase regional energy supply security. And it will foster clean economic growth.

A Pan-Asian energy Infrastructure is already taking shape through:

-China's development of a nationwide electricity grid to carry wind, solar and hydro power.

-Asean’s Trans-Asean Gas Pipeline and Trans-Asean Electricity Grid projects.

-Indonesia's Palapa Ring, Australia's National Broadband Network and China's Fiber Optic City telecommunications projects.

-Development of new onshore and offshore natural gas projects in Australia, Southeast Asia and China.

As Asia's multi-decade infrastructure boom picks up speed, the case for bundling cross-border electricity, natural gas and data conduits is compelling.

The benefits: lower infrastructure investment costs, increased market flexibility, enhanced supply security and deepened multilateral cooperation.

Bundling will enable future energy networks to carry non-fossil fuel energy sources like hydrogen and biofuels but also wastes like captured carbon. Ubquitous infrastructure also will introduce valuable and innovative 'transport or transmit' flexibility to energy markets.

With a seamless Asian 'energy super highway' in place by 2050, market forces will then pick the winner in the high-stakes, low emission energy game of tomorrow.

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