energy trading among ASEAN member countries.
The power interconnection offers several benefits compared to isolated systems for each
country, but will imply investments in cross-border transmission lines and substations, and the
national transmission systems may have to be reinforced. Strong interconnections between
power systems reduce the total need for operating reserves because of the opportunity to share
reserves between countries. This reduces operating costs, but also reduces to some degree the
need for installed peaking capacity. Hence, it will reduce the environmental impact. Strong
interconnected power systems have high reliability resulting in low levels of energy not served.