An Evaluation of the Prospects for Interconnections among the Borneo and Mindanao Power Systems

Date Published
November 01, 2014

This report examines how Borneo’s power systems could be interconnected to enable interisland power trading between utilities in Brunei Darussalam, Indonesia, and Malaysia, as well as offshore power trading with utilities in neighboring island grids. These would include Peninsular Malaysia, Mindanao and Luzon in the Philippines, and North Sulawesi and Java in Indonesia.

The study identifies 12 possible interconnection links, together with budget costs and indicative minimum wheeling charges based on a preliminary assessment. Seven possible links are by overhead transmission lines within Borneo and five are by submarine cables to neighboring island grids.

The report also provides general recommendations to address technical and commercial arrangements for power trading platforms and identifies priority transmission interconnection projects that can be considered for international funding.

Politically divided among Indonesia, Malaysia, and Brunei Darussalam, Borneo is ASEAN’s largest single island and contains significant resources for electricity production, primarily hydropower (mostly Sarawak in Malaysia and North Kalimantan in Indonesia) and coal and gas (mostly East Kalimantan, Brunei, and Sabah in Malaysia). These resources could eventually be complemented by the island’s renewable resource potential in biomass, geothermal and solar (especially in Sabah), wind and possibly marine energy from the Makassar Strait, which is between Borneo and Sulawesi in Indonesia.

CONTENTS

  • Overview and Study Objectives
  • Eastern ASEAN Grid Development Planning
  • Power Development Options for Borneo
  • Kalimantan Electricity Development Planning
  • Northern Borneo Transmission Development Plans
  • Proposed Borneo Interconnection Strategy
  • Recommended Transmission Project for International Financial Institutions Financing