Energy Trade in the Greater Mekong Subregion: Evaluating Impacts of the Mekong Power Grid on Hydropower Development in the Mekong River Basin
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This paper investigates the extent to which the Mekong River Basin countries have achieved socioeconomic benefits based on regional cooperation through the Greater Mekong Subregion (GMS) program, focusing on the Mekong Power Grid and hydropower development. This study pays attention to the period from 2012 to 2022. The benefit sharing approach is deployed for evaluating the extent to which hydropower development and the Mekong Power Grid have contributed to the regional energy trade in the GMS program. The GMS program was launched by the Asian Development Bank (ADB) in 1992, and the Chinese provinces of Yunnan and Guangxi, Myanmar, Lao PDR, Thailand, Cambodia, and Vietnam have taken an active part in the program. The goals of the GMS program are to achieve poverty alleviation, to accelerate economic development, and to implement regional cooperation in various sectors, including energy, tourism, and transportation. The GMS Economic Cooperation Program Strategic Framework 2030, established in 2021, provides a new framework for prosperity and sustainable development in the river basin. In the energy sector, the GMS program has been instrumental in facilitating hydropower development and creating the Mekong Power Grid with the Regional Grid Code (RGC), contributing to socioeconomic development and promoting hydropower trade in the region, thereby enhancing regional cooperation between the riparian countries. Despite such achievements, the program has been confronted with various challenges, including the gap of economic development between the riparian countries, social and environmental concerns regarding hydropower development, and a growing influence of China on the river basin. These challenges should adequately be addressed within the program, which can guarantee the sustainability of the program for the river basin.
Abstract
This paper investigates the extent to which the Mekong River Basin countries have achieved socioeconomic benefits based on regional cooperation through the Greater Mekong Subregion (GMS) program, focusing on the Mekong Power Grid and hydropower development. This study pays attention to the period from 2012 to 2022. The benefit sharing approach is deployed for evaluating the extent to which hydropower development and the Mekong Power Grid have contributed to the regional energy trade in the GMS program. The GMS program was launched by the Asian Development Bank (ADB) in 1992, and the Chinese provinces of Yunnan and Guangxi, Myanmar, Lao PDR, Thailand, Cambodia, and Vietnam have taken an active part in the program. The goals of the GMS program are to achieve poverty alleviation, to accelerate economic development, and to implement regional cooperation in various sectors, including energy, tourism, and transportation. The GMS Economic Cooperation Program Strategic Framework 2030, established in 2021, provides a new framework for prosperity and sustainable development in the river basin. In the energy sector, the GMS program has been instrumental in facilitating hydropower development and creating the Mekong Power Grid with the Regional Grid Code (RGC), contributing to socioeconomic development and promoting hydropower trade in the region, thereby enhancing regional cooperation between the riparian countries. Despite such achievements, the program has been confronted with various challenges, including the gap of economic development between the riparian countries, social and environmental concerns regarding hydropower development, and a growing influence of China on the river basin. These challenges should adequately be addressed within the program, which can guarantee the sustainability of the program for the river basin.
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