Representatives of the GMS countries issued a statement following meetings last week in Thailand detailing a plan to expand region-wide energy trade and to go beyond electricity in integrating power sectors. GMS activities are conducted with the assistance of the Asian Development Bank.

The GMS includes Cambodia, China, Laos, Myanmar, Thailand and Vietnam. Areas of China involved are the Guangxi Zhuang Autonomous Region and Yunnan province. The region has a population of about 300 million -- slightly smaller than the United States -- and is seen as ripe for energy development. As many as 74 million people don't have access to electricity.

"The agreement to accelerate action on cross-border power trade and the development of renewable energy resources will boost energy security, through improved efficiency of energy use, while contributing to reduced greenhouse emissions in a subregion which is especially vulnerable to the effects of climate change," ADB Vice President C. Lawrence Greenwood said in a release.

Among the issues the ministers sought to address in the Thailand meetings were energy poverty across the six-country region; the vulnerability of the energy sector, particularly in the importation of fuels such as oil; and the environmental costs of energy development.

"The formulation of a unified set of rules governing power trade and the development of cross-border power transmission link is under way," the final GMS communique stated. "Work has also commenced on integrating environmental and social concerns in the planning and implementation of subregional power projects."

The statement said the ministers gave support to a GMS energy strategy that "will improve energy security and promote environmentally sound energy practices, including the development of renewable energy sources."

Energy use in the region grew at an average of 8 percent a year from 1993-2005, the ADB said, with that trend expected to continue. In 2005 about 21 percent of the energy used in the GMS was imported. Thailand, which needed to bring in 40 percent of its energy needs, was the largest importer in terms of dollar value, but Cambodia, Laos and Vietnam import all energy used for transportation.

The ADB noted there are substantial energy resources across the GMS, but they are unevenly distributed, with some sections rich in natural gas, others in coal and a third area a strong candidate for hydroelectric projects.

GMS analysis estimated that from 2010-35 additional electricity transmission capacity would need to be installed at a cost of $8.5 billion. That would be part of a "shared energy future" that would need about $600 billion in infrastructure investment over the next 30 years.

The GMS road map notes that "Investment in enhancing energy productivity will help realize more secure and efficient energy systems" and "The policy environment should promote private investment in energy."

The GMS document concludes: "As the financial requirements of the road map are substantial, there is a need to better plan and manage development partnerships for the road map, in order to mobilize increased financial and technical support … ensure better resource use … and attract greater GMS stakeholder participation not only in financing projects but also enhancing overall energy use efficiency."

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