Highlights
- The expansion of multilateral power trade (MPT) faces technical harmonisation issues attributed to interconnection operation: The varying level of grid development, differing technical standards, and lack of regulatory harmonisation for interconnections become the main technical obstacles that impede the expansion of MPT under the APG.
- Large-scale technical standard harmonisation needs to be done to lower the barrier for entry for MPT expansion: While bilateral harmonisation worked, a synchronised multi-system operation of MPT requires broader technical standards harmonisation by building upon existing harmonisation efforts, which could enable countries to seamlessly integrate with the existing MPT.
- A voluntary, bottom-up, and staged approach, complemented by a strengthened institutional and regulatory framework, is required for accelerating an inclusive MPT expansion: Building upon existing subregional power trade, the AMS needs to set up a subregional working group of system operators and regulators to develop a voluntary subregional guideline, starting from aligning the standards for HVAC interconnections.