With the passage of just two weeks to go to the annual meeting of ASEAN Energy Ministers this year, the host country Malaysia said that it will require a practical approach to meet the challenges facing the integration of the regional energy network.

Vadella Youssov, Vice Prime Minister of Malaysia, said that a top priority for member states is to develop common technical standards and network symbols to ensure uncompromising inter -operating capacity.

“The second number is to set transparent rules for definitions and wheels, as well as the mechanism of dispute settlement,” said Vadilla, who is also the Minister of Energy Transition in Malaysia and Transforming Water. “This will lead to (providing) clarity in terms of wheel fees and how to solve conflicts.”

The wheel fee is a fee paid by energy producers and consumers to an external entity for the electricity network operators, to use the current infrastructure to send to exchange electricity separately.

Vadella said that the member states of the ASEAN because of signing a memorandum enhanced by understanding (APG) when they gathered from October 14 to 17 in Kuala Labor.

A Conversation I found that two -thirds of the respondents believe that ASEAN needs a stronger multimedia coordination frameworks to protect from supply chain disorders, as 67 percent mentioned organizational uncertainty as an obstacle to scaling clean energy in the region.

Vadella said that the upcoming memorandum of understanding will focus on how to coordinate the different rules and regulations for the electricity trade between members.

“We already have a good example,” he said at the summit of European Union in Kuala Lumpur today. “

“If we can expand this to all other member states and everyone agrees to that, we are already a business model. It is only related to expanding it to know what differences are in terms of standards, practices and rules for other member states.”

Industry players welcomed the commitment to align the standards across the ASEAN countries. Azli Mohamed, the manager of Malaysia at Siemens Energy, noted that there are more than 20 network code used throughout the region today, making it “almost impossible” to implement projects across the border.

The financiers also expressed their support for more simple standards.

“We would like to see that ASEAN has a unified organizational framework (and) coordinating network symbols and technical standards for energy trade, including unified energy purchase agreements and inter -delivery protocols,” at the same event.

She added that the framework of transparent customs tariffs would also help build the investor’s confidence, but it is important that the ASEAN countries have a clear road map of the climate and energy -backed by international rituals.

Currently, eight out of 10 of the Asian countries set a net goal, with the final dates range from 2050 to 2065. Only the Philippines and Myanmar have not yet adhered to a carbon defect schedule.

“If a country sets a clear goal, this is a fundamental commitment (provides certainty),” said Raja Amir, CEO of HSBC Amanah Malaysia. “Clean energy projects will eventually bring together (to that country) as part of that mechanism.”

Building investor confidence

To keep the APG momentum after this year, Fadillah said that ASEAN will need to give priority to monitor the level of the regular ministry, as well as custom financing mechanisms such as mixed financing and the public and private sectors that can remove risks and attract investment.

He said that the ASEAN countries will also need strategic support from multilateral development banks to support border infrastructure development, as well as multinational energy agencies such as the International Energy Agency (IEA) and the International Renewable Energy Agency (IRNA).

He said: “Governments alone cannot provide APG. We need industry and financiers … to invest in infrastructure, including transportation networks and sustainable energy projects.”

However, as governments can help create a stable organizational environment with clear and consistent rules, as well as providing tools for getting rid of dispensation operations such as guarantees and sovereignty -backed financial facilities.

“The purchases should be in place to encourage fair competition and innovation in the energy sector,” Vadella said.

Amir from HSBC said that such strong rules and regulations can provide investors with more certainty in returning. Simplifying the license and licenses by establishing one comprehensive administrative center will also help, in addition to loan guarantees that add credibility to the fundraising.