Malaysia: Multilateral power deal delayed due to Thai politics; renewal expected next month

Malaysia's Energy Minister said that Thailand has postponed the renewal of a multilateral power trading agreement in Southeast Asia due to changes in local politics.

The Lao PDR-Thailand-Malaysia-Singapore (LTMS) Project to supply hydropower from Laos via Thailand and neighbouring Malaysia is now expected to be renewed in November, Energy Transition and Water Transformation Minister Fadillah Yusof told . The Constitutional Court removed Thailand's prime minister Paetongtarn Shinawatra in August. Anutin Charnvirakul was appointed to the position the following month.

Malaysia currently chairs the Association of Southeast Asian Nations and Fadillah addressed the group's energy ministers at the meeting of the bloc on Friday.

Fadillah explained that the delay is due to the fact that the Thai government has undergone some political changes.

He said that the second phase will begin after the signing of the LTMS, and that Malaysia has already committed itself to the project.

The Thai Energy Ministry did not respond immediately to a comment request outside of normal business hours.

The LTMS is a precursor of the broader ASEAN Power Grid initiative (APG), which aims at interconnecting all its ten members states. It is widely regarded as one way to reduce Southeast Asia's increasing reliance on fossil-fuels for electricity generation.

"APG is the spine of ASEAN." "If we want to become one of the most powerful economic forces in the world, then we need energy," said he.

Fadillah also added that significant progress was being made in the Borneo Power Grid.

He said that by the end of this calendar year, Sabah would be connected to Sarawak. West Kalimantan already purchases power from Sarawak and Brunei is in the process of connecting. Eventually, the Philippines will join.

Fadillah also said that Malaysia was reducing its dependence on coal, and increasing its renewable energy capacity.

He added that the country's electricity demand will rise by 10% and 8% in 2026, and by 8% in 2027. This is due to data centres and industries with high demand. Separately Laos' deputy minister of energy said that the country was considering stopping electricity supply to cryptocurrency miner as it tries to redirect power domestically to industries that contribute to economic growth. (Reporting and editing by Sudarshan Varadhan and Ashley Tang)

(source: Reuters)