Interconnectors in Asia - boosting availability of hydropower

Summary: A new electricity interconnector between Singapore and Malaysia has been completed, doubling capacity to c. 1,000MW. It will be used for cross-border power trade in the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project that will import up to 100MW of renewable hydropower from Lao PDR to Singapore. Europe and China both have strong positions in electricity interconnectors.

Why this is important: Delivering responsive and cost effective renewable electricity, such as that from hydro, will be an important element in supporting electrification at the consumer end. But, it will also help the hydro electricity generator, helping them achieve the best price for their product.

The big theme: Many governments around the world have set targets to decarbonise their electricity generation systems. Achieving this requires us to build a lot more renewable electricity generation, but its also about creating a smart electricity grid that is decentralised, flexible, and able to accommodate the demands that the variable generation such as wind and solar brings. This will include electricity storage, interconnectors, demand management, and grid resilience.

Summary of a story from the Singapore Business Review:

The upgrade of the electricity interconnector between Singapore and Malaysia has been completed, doubling the capacity of electricity flow to c. 1,000 MW. As well as supporting bidirectional flow between the two systems, the interconnector will also be used for cross-border power trade in the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project, that imports up to 100 megawatts of renewable hydropower from Lao PDR to Singapore through interconnections in Thailand and Malaysia.

Why this is important

Regular readers will know that we see massive long-term potential for electricity interconnectors, those high voltage cables that connect the various electricity systems and allow the trading of surplus electricity. Their importance will only increase as we see more variable renewables be added to the grid, as they allow short falls in one region (no sun or wind) to be fulfilled by surpluses elsewhere. This is an industry in which Europe has a strong position, with Nexans and Prysmian and NKT being among the global leaders.

However, as with many things renewable, China is very active, particularly in ultra high voltage (UHV) cables, which allow electricity to be transported vast distances, with limited line losses. China's State Grid plans to invest more than 150 billion yuan ($22 billion) in the second half of 2022 in UHV power transmission lines, and looking further out construction of eight new UHV projects is planned to connect China's far western regions, where solar, wind and hydropower plants are mainly located, to its mega cities in the east. The entire Chinese grid upgrading project might end up costing $300bn, spent over 30 years.

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