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April 23, 2024

Enhancing ASEAN Energy Connectivity: USTDA & PLN Join Forces with Delphos

In a significant move towards bolstering energy connectivity between Indonesia and Malaysia, a grant agreement was signed on March 6, 2024, between the U.S. Trade and Development Agency (USTDA) and Indonesian national utility PT Perusahaan Listrik Negara (PLN). The agreement, under which Delphos will serve as prime contractor, entails  USTDA’s commitment to provide US$ 2M grant funds to support a feasibility study for the development of two cross-border power interconnections between the two nations. The primary goal is to enhance system flexibility and efficiency by promoting efficient resource sharing and utilization while aligning with the clean energy objectives of the Association of Southeast Asian Nations (ASEAN).

The feasibility study, set to commence in early 2024, will be conducted by Delphos International, Ltd. in coordination with Malaysian power utilities Tenaga Nasional Berhad and Sabah Electricity Sdn Bhd and will focus on assessing the viability of establishing cross-border interconnections between Sumatra and Peninsular Malaysia, as well as between Kalimantan and Sabah. These interconnections, recommended by the ASEAN Interconnection Masterplan Study (AIMS III), are crucial for creating a more integrated, sustainable, and affordable energy landscape across Southeast Asia. By facilitating efficient resource sharing, these interconnections will help meet growing energy demands, enhance energy security, and advance clean energy and climate protection goals in both Indonesia and Malaysia.

Beyond mere bilateral cooperation, this deal heralds wider economic and environmental benefits. It integrates into ASEAN’s blueprint for 18 cross-border interconnections, facilitating efficient electricity sharing among nations to balance supply and demand, especially with variable renewable energy sources. Such initiatives bolster energy security and sustainability throughout Southeast Asia.

Delphos’ Brian Tarmey at the signing ceremony in Jakarta, Indonesia

Darmawan Prasodjo, President Director of PLN, emphasized the crucial role of collaboration in realizing the ASEAN Power Grid’s potential for prosperity, energy security, and clean energy transitions. He noted, “The Sumatra-Peninsular Malaysia and Kalimantan-Sabah interconnections are prioritized due to their significant impact on regional energy security and the acceleration of energy transition efforts.” Enoh, USTDA’s director, highlighted the opportunity for economic development and improved energy security through partnerships with PLN, stressing the pivotal role of electricity infrastructure in supporting renewable energy resources and economic growth.

Delphos International Ltd., in partnership with PLN and USTDA, has been instrumental in advancing this deal and supporting the development of the energy sector in the emerging economies. Delphos’ past projects, such as the Sarulla geothermal power plant in Indonesia, demonstrate their commitment to sustainable infrastructure development. The 330MW Sarulla geothermal power plant, located in North Sumatra province of Indonesia, is one of the biggest geothermal power plants in the world, with a total project cost of $1.7 billion. The Sarulla project, funded by international organizations, highlights Delphos’ expertise in facilitating transformative energy projects that contribute to economic growth and environmental sustainability. Through collaborative efforts and innovative infrastructure projects like the cross-border power interconnections, Delphos along with these entities is paving the way for a more interconnected, resilient, and sustainable energy future in the region.

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