Powering Up ASEAN

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The ASEAN Power Grid (APG) is a transformative initiative, critical not just for linking nations but for powering a future that is economically vibrant, energy-secure, sustainable, and equitable for the entire Southeast Asian region. It's an evolving blueprint for shared energy prosperity.

Weaving the Grid: A Connected Vision

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.

Close up of a string art network on aged wooden board, shallow depth of field, minimalist, rustic, natural light, warm tones, high angle shot.

Energizing Growth, Greening the Future, Ensuring Equity

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:

  • Integrating Diverse Renewables: Seamlessly incorporating variable sources like solar and wind.
  • Enhancing Grid Stability: Functioning as a regional ‘virtual battery’.
  • Unlocking Clean Energy Potential: Connecting rich renewable resource zones with demand centers.
  • Optimizing the Regional Fuel Mix: Encouraging a decisive shift towards cleaner energy.

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.

Recent Strides and the Road Ahead: Adapting to New Realities

Momentum for the APG is strong, with continuous adaptation to new opportunities and challenges:

  • LTMS-PIP Expansion: The Lao PDR-Thailand-Malaysia-Singapore Power Integration Project saw its capacity double from 100 MW to 200 MW in September 2024, reinforcing the viability of multilateral electricity trade.
  • Expanding Interconnections: Singapore is advancing its goal to import up to 6 GW of low-carbon electricity by 2035. As part of this, projects to import up to 3 GW from Indonesia have received conditional licenses, with one specific project aiming to supply 1 GW initially from Riau Islands’ solar projects, targeting commercial operations from 2029. There’s also growing exploration of new bilateral links, such as those between Singapore and Vietnam or Cambodia, and expanded Laos-Vietnam connections.
  • BIMP-PIP Progress: The Brunei Darussalam-Indonesia-Malaysia-Philippines Power Integration Project continues its development, with feasibility studies for initial capacities around 100 MW expected by 2025.
  • Evolving APG Framework: The original APG Memorandum of Understanding (MoU) has been extended to 2025 while a more comprehensive successor agreement is developed. Key priorities for this new framework include discussions around a potential regional coordinating body, the development of regional Renewable Energy Certificate (REC) markets, and a transparent methodology for regional wheeling charges.
  • International Cooperation & Capacity Building: Collaboration is key. For instance, Singapore and the IEA are actively working on capacity-building initiatives, including regional training programs, supported by the IEA’s Regional Cooperation Centre in Singapore, to advance the APG vision.
  • Accommodating Future Fuels: The APG infrastructure and regulatory frameworks will also need to adapt to emerging low-carbon technologies such as green hydrogen/ammonia and Carbon Capture, Utilisation, and Storage (CCUS), which are increasingly part of national energy transition plans. Vietnam’s revised Law on Electricity, effective February 2025, already includes provisions for these new energy carriers.

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.