The APG aims to create a fully interconnected regional power system, linking national networks through bilateral, sub-regional, and ultimately, a unified ASEAN grid. This vision is backed by the ASEAN Interconnection Masterplan Study (AIMS III), which identifies the potential for 18 GW-scale interconnections, targeting a cumulative transmission capacity of up to 33 GW by 2040. The long-term goal remains a fully integrated regional electricity system by 2045. Foundational work includes six operational bilateral interconnections linking Singapore, Peninsular Malaysia, Thailand, Cambodia, Lao PDR, and Vietnam. The pioneering Lao PDR-Thailand-Malaysia-Singapore (LTMS) initiative for multilateral power trade continues to be a cornerstone of this expanding network.
A secure and reliable electricity infrastructure is fundamental to ASEAN’s economic growth. The APG is designed to enhance electricity trade, meet rising demand, improve energy access, and critically, contribute to more affordable clean energy for all. This is achieved by optimizing the use of diverse energy sources and facilitating efficient cross-border trade, underpinning a just and equitable energy transition.
ASEAN is making strides towards its ambitious renewable energy (RE) goals. While the target of 23% RE in Total Primary Energy Supply (TPES) by 2025 presents ongoing challenges, the region is on track to surpass its goal of 35% RE in installed power capacity, with projections now exceeding 39% for 2025. The APG is instrumental by:
The financial commitment is immense: an estimated USD 990 billion is needed for ASEAN’s power sector by 2035. A substantial portion, potentially USD 367 billion or more, is required for grid investments alone to connect planned renewable projects. The International Energy Agency (IEA) estimates that 1.7 million km of transmission and distribution grids need to be added or refurbished in Southeast Asia by 2030, with several ASEAN countries planning to add approximately 45,000 km of transmission lines by the same year. This presents significant opportunities for private sector involvement in investment, financing, and technology transfer.
Successful APG implementation also hinges on a robust regional regulatory and technical framework. A key challenge being proactively addressed is ensuring fair and transparent energy pricing across diverse generation technologies, reflecting their true costs and benefits to foster sustainable market development and investor confidence.
Momentum for the APG is strong, with continuous adaptation to new opportunities and challenges:
While challenges in financing, regulatory harmonization, and technical integration remain, the APG is undeniably advancing. Future projects involving marine/undersea cables and new inland interconnections will further knit the region’s energy systems together.
The ASEAN Power Grid is more than an infrastructure project; it’s a shared commitment to a resilient, interconnected, sustainable, and equitable energy future that will power ASEAN’s prosperity for generations.
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