By P Prem Kumar

KUALA LUMPUR

Malaysia has underlined the importance of a regional power grid, saying Monday that despite cost problems the ASEAN proposal must be implemented in the medium term to ensure sustainable energy development.

Deputy Minister for Energy James Dawos Mamit told reporters that despite most countries producing excess energy which goes to waste if not shared with neighboring nations, investment is continuing to be a stumbling block.

"The ASEAN power grid has not materialised due to heavy costs," Mamit said on the sidelines of the 2015 Association of Southeast Asian Nations (ASEAN) Energy Business Forum.

The grid is estimated to need an investment of $5.9 billion -- although annual savings of around $662 million in new investment and operating costs are anticipated.

"Every time we discuss this matter with energy ministers or head of states, the only problem we see is the cost," Mamit said.

He also underlined that governments are aware of objections from some organizations as such power-sharing proposals would pierce the economic protection of many of energy industries.

"The objections would be there but they can all be thrown out in policy when the ministers meet," he said.

Some 3,000 megawatts of energy are currently being shared among ASEAN countries on a bilateral basis.

The power grid was a flagship program introduced in 1997 to ensure regional energy security while promoting the efficient utilisation and sharing of resources.

ASEAN has adopted a strategy of encouraging interconnections through 15 identified projects -- first to be set up on bilateral terms, then gradually expanded to a sub-regional basis and finally to a totally integrated Southeast Asian grid system.

The proposal is in progress, with 11 on-going projects already begun.

On Monday, energy industry researcher Wolfgang Eichhammer told Anadolu Agency that ASEAN is on the right track to reach a mutual consensus on the grid.

He said the region had made a good start in integrating resources on a bilateral basis, and should use similar formulas to reach a multilateral energy pact.

"The European Union took nearly three decades to reach an integration given the different needs and demands of energy by every member state," he  said at the two-day summit.

"The issue in ASEAN is the different developmental status of member countries as well as several governments' moves to protect their energy sectors."