Project Mapping Details

Feasibility Study on PLN’s Indonesia-Malaysia Cross-border Interconnection Project Project Dates: March 2024 - December 2026

PROJECT OBJECTIVE

The U.S. Trade and Development Agency (USTDA) signed a grant agreement with Indonesian national utility PT Perusahaan Listrik Negara (PLN) for a feasibility study to support of the development of two cross-border power interconnections between Indonesia and Malaysia. The project, which advances a key power sector objective for the Association of Southeast Asian Nations (ASEAN), will facilitate efficient resource sharing to help meet growing energy demands, enhance energy security, and implement policies for clean energy and climate protection goals in both countries.

PROJECT DESCRIPTION

The ASEAN Centre for Energy (ACE) supports in leading the feasibility study aimed at exploring the potential for new cross-border power interconnections between Indonesia and Malaysia.

Set to commence in early 2024, the study will assess the feasibility of establishing cross-border interconnections between Sumatra and Peninsular Malaysia, as well as between Kalimantan and Sabah. These proposed interconnections, recommended by the ASEAN Interconnection Masterplan Study (AIMS III), are critical for facilitating a more integrated, sustainable, resilient and affordable energy landscape across Southeast Asia, especially in the southern and eastern sub-systems.

The study will provide comprehensive insights into the technical, economic, financing and environmental aspects of the proposed interconnections. By identifying viable pathways for enhanced power exchange between Indonesia and Malaysia, the study aims to lay the groundwork for significant infrastructure projects that will bolster energy security, facilitate economic development, and support the region’s transition to a more sustainable energy mix.