ECA REGIONS / SOUTH EAST ASIA
ECA has been working in the South and South-East Asian region on a continuous basis from our establishment through to the present. We were engaged in many of the policy debates around the liberalisation of energy sectors in the region during the late-1990s and early-2000s and have continued to work in those countries and others on infrastructure industry reform, regulation and private participation.
We also have wide-ranging experience in infrastructure planning and appraisals across the region including gas master plans, national electrification plans, water sector financing strategies and the institutional reforms required to support these. Across the region, our experience encompasses China, Singapore, Thailand, Vietnam, Indonesia, the Philippines, Malaysia, Cambodia and Lao PDR.
RECENT PROJECTS INCLUDE >
RECENT PROJECTS INCLUDE >
The Malaysian electricity regulator, Suruhanjaya Tenaga (ST), sought consulting advice to evaluate the effectiveness of its incentive based regulation mechanism and to review tariff submissions by TNB, the monopoly electricity utility in Peninsular Malaysia. ECA’s work included auditing TNB’s performance during the preceding three years, reviewing TNB’s submissions on future costs of service, developing a comprehensive revenue/tariff model, preparing new regulatory reporting standards and templates, developing key performance indicators, and drafting a new set of revenue/tariff regulations.
ECA worked as an integral part of the market design team of the Electricity Regulatory Authority of Vietnam on the transition to a wholesale competitive electricity market. The range of advice provided was wide-ranging including market design, reviews of draft rules and regulations, identifying accompanying industry restructuring requirements and developing capacity-building programmes for participants.
The objective of this assignment was to develop a framework to be used by the Government of Indonesia to improve urban water service provisions through efficient allocation of available sources of finance for the sector to appropriate investment or service improvement projects. The framework includes an incentive based investment grants that are accompanied by technical assistance and capacity building component. To support the framework, a self-assessment tool (SAT) for local governments and water utilities (PDAMs) was developed to measure baseline performance and monitor progress.
ECA examined the economic arguments for continuing with the existing locational methodology or switching to a postage-stamp methodology. Conducted quantitative analysis of the impacts of alternative methodologies on major individual gas shippers and users. Proposed suitable transition mechanisms to mitigate these impacts if a change in methodology was to be implemented.
ECA was responsible for drafting the Electricity Tariff Regulations which govern all on-grid tariffs. The regulations were prepared over a four-month period working intensively with the Ministry of Electric Power.
The project developed a new gas development master plan (GDMP) which serves as a guide to the necessary infrastructure investments required over the period to 2025. Given the uncertainty over supply sources and future prices and, hence, demand for gas, the project looked at a number of scenarios for the future market.
ECA led an international study to develop operating procedures and guidance note for developing countries and World Bank task team leaders on how to support public institutions in effectively engaging local private sector to deliver water and sanitation services, especially to the poor in rural growth centres and small towns. An in-depth case study of the domestic private sector participation in the Philippines was one of the major deliverables from this study.
ECA supported ERAV in its review of transmission pricing, including an assessment of current arrangements, recommendations on improvements drawing on international best practice and the calculation of new example transmission charges.
ECA analysed the impacts of changing tariff methodologies and assessed the appropriate wholesale and retail margins. This included financial modelling of the resulting revenues and prices and a comparison of outcomes under alternative methodologies.
ECA assisted the Bangladesh Rural Electrification Board in the application to rural electricity cooperatives of the tariff methodology issued by the Bangladesh Electricity Regulatory Commission. This included development of tariff models for all 80 cooperatives and their transfer to BREB along with recommendations on enhancements to the BERC methodology.
Electricite du Cambodge (EDC) wanted to investigate the potential viability of a 100 MW solar park project, to be developed as an IPP selling to EDC. ADB conducted a pre-feasibility study and subsequently supported EDC in moving to a full due diligence and design of the transaction. ECA was responsible for preliminary financial and the detailed economic analysis of the project in order to mobilise clean energy financing.
ECA was part of a team that drafted an energy ‘white paper’, identifying key energy sector policies and targets, as an input to the national five-year development plan 2020-24. The white paper covers all aspects of the value chain and provides an example of evidence-based policymaking to enhance future policy design.
This project, for the World Bank and Department of Energy, followed on from a previous assignment developing an institutional and regulatory framework for a large-scale SHS electrification programme within the Philippines. The programme will be delivered on a fee-for-service basis by rural electric cooperatives (ECs). The project involved the design of the regulated tariffs to apply to this service.
ECA advised on a natural gas pricing framework in which liquefied natural gas (LNG) is purchased at market-linked prices and can be recovered at some point in the electricity supply chain. This would enable the gas sector overall to potentially triple in size while moving from the previous differentiated gas prices to a more unified pricing structure compatible with a competitive power market.