A Just Transition Approach to the ASEAN Power Grid

Southeast Asia has seen a resurgence in interest in the development of cross-border interconnections since the successful implementation of the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP) in 2022. The increased momentum towards the realisation of the ASEAN Power Grid (APG) coincides with a growing discourse on ensuring a just transition in Southeast Asia, which focuses on addressing the disproportionate impact across socio-economic groups as they relate to benefits, costs and participation in decision-making related to renewable energy projects.   

The APG aims to integrate the electricity systems of Southeast Asian countries through cross-border interconnections. As of this time of writing, eight out of 18 key interconnections proposed under the APG have been completed, bringing cross-border transmission capacity to 7,720 MW. Examining linkages between justice and interconnections is important, as cross-border energy infrastructures are double-edged swords. Regional grids and pipelines facilitate energy trade, enhance economic development, increase electricity access and enhance the stability of energy systems, but multiple cross-border energy projects have also devastated communities and the environment, facilitated collusion between state actors and corporations and instigated political conflicts and instability. In Southeast Asia, the Just Energy Transition Partnership (JETP) has facilitated some discussion around the issue of justice and also on interconnections, but the link between the two is less clear.

The JETP was launched at the 26^th Conference of the Parties in 2021 and will provide US$20 billion and US$15.5 billion to Indonesia and Vietnam respectively to reduce the use of coal and increase the share of renewables in electricity generation to 34 per cent for Indonesia and 47 per cent for Vietnam by 2030.

The two national frameworks that will implement the JETP — Indonesia’s Comprehensive Investment and Policy Plan (CIPP) and Vietnam’s Resource Mobilisations Plan (RMP) — put a strong emphasis on the development of domestic grids. Indonesia plans to develop cross-island interconnections which will facilitate the transfer of renewable energy from Sumatra, Kalimantan, and Nusa Tenggara to Java, Madura and Bali. To meet the JETP goals, Indonesia will need to invest around US$50 billion in electricity networks until 2040, of which over 80 per cent will be required for transmission.

Vietnam is rapidly upgrading its grid infrastructure to transfer wind and solar energy from the South to the North to overcome congestion and reduce coal use. A key project is the Quang Trach-Pho Noi 500 kilovolt (kV) transmission line which will pass through nine provinces and improve energy security in the North. The RMP builds on the target of the Power Development Plan 8, (PDP8) which recommends investment of US$15.0 billion in power transmission grid expansion by 2030.

Figure 1. Indonesia’s Just Transition Framework

The CIPP and RMP also provide detailed and ambitious pathways for incorporating just transition frameworks in project implementation. As shown in Figure 1, the just transition framework in the CIPP is based on three concepts: (i) human rights; (ii) gender equality and empowerment; and (iii) accountability. The three concepts collectively inform more specific goals of providing protection to vulnerable groups and fostering resilient societies and economies. Similarly, the RMP proposes that just transition processes in Vietnam should aim to maximise people’s well-being by ensuring that they (a) have access to energy and energy security; (b) can benefit from sustainable and inclusive economic development; (c) are protected from negative effects; and (d) participate in the energy transition process. These foundational goals inform specific interventions for households, businesses and workers (Figure 2).

Figure 2. Vietnam’s Just Transition Framework

The CIPP and the RMP do not specify how just transition can inform the development of grids. However, the JETP provides an opportunity for a broader discussion on how the APG initiative can be informed by just transition frameworks. A new Memorandum of Understanding on the APG is expected to be signed after the current agreement expires in 2025. This should policymakers an opportunity to reflect on several key policy instruments that can be used to incorporate just transition in cross-border energy projects.

Two areas are pertinent here: community participation and a grievance mechanism. Community consultation has been a long-standing practice in developing energy infrastructure with varied results. However, implementing a just transition will require going a step further and facilitate active community participation in decision-making. Community participation in the routing of grids and pipelines can incorporate local concerns and knowledge into planning processes, thereby minimising impact and ensuring greater local buy-in. For example, the Stakeholder Engagement Plan of the Monsoon Wind Power Project, which aims to export wind power from southern Laos to central Vietnam, highlights particular groups of local actors who can play a key role in the design of the project. While these developments are encouraging, the efficacy of engaging grassroots communities in Southeast Asian countries differs vastly. Moreover, not all political systems support such initiatives.

Regional grids and pipelines facilitate energy trade, enhance economic development, increase electricity access and enhance the stability of energy systems, but multiple cross-border energy projects have also devastated communities and the environment, facilitated collusion between state actors and corporations and instigated political conflicts and instability.

An effective grievance mechanism serves two functions: it provides a platform for community members to express their concerns and facilitates timely mitigation measures. Grievances related to regional energy projects can include corruption, negative impacts on the environment and lack of benefit sharing. For example, the West African Power Pool envisions a grievance mechanism that consists of a Complaints Resolution Committee that is responsible for receiving and resolving complaints in an objective and timely manner, as well as community liaison officers who will record and respond to any grievances or complaints during project implementation. This grievance mechanism also provides timeframes and institutional processes for the escalation of unresolved complaints.

On paper, the APG initiative can be aligned more closely with just transition by drawing on the frameworks produced in the CIPP and RMP as well as best practices from within and outside the region. However, at the implementation stage, domestic regulations and political systems will play a key role in determining the impact of energy infrastructure on societies and the environment. The challenge of implementing just transition will be formidable. At the least, a focus on regional guidelines with respect to community participation and grievance mechanisms can advance a just transition approach to the APG.

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