Overview

The ASEAN Power Grid (APG) is a flagship initiative under the ASEAN Plan of Action for Energy Cooperation (APAEC) aimed at enhancing energy security, sustainability, and economic integration across Southeast Asia. It envisions a network of cross-border power interconnections that enable electricity sharing between ASEAN countries, leveraging diverse energy sources, including renewables, to achieve cost-effective and resilient power systems. 

A milestone was achieved through the Laos–Thailand–Malaysia–Singapore Power Integration Project (LTMS-PIP), the first multilateral electricity trading pilot in the region. The project transmits up to 100 MW of renewable hydropower from Laos to Singapore, demonstrating the technical and regulatory feasibility of cross-border energy cooperation. With momentum building, ASEAN has made measurable progress toward this vision, reflected in the growing number of interconnections already in place and those prioritized for the years ahead.

APG at a Glance

• Goal: 27 cross-border interconnections across 10 countries

• Completed: 13 interconnections, 5.2 GW total capacity

• Priority Links: Laos–Vietnam, Sarawak–West Kalimantan, Singapore–Indonesia

• Timeline: 2045 for full realization (APAEC Phase II and III)

Financing the Grid

Delivering the ASEAN Power Grid’s full potential, as outlined in its ambitious cross-border targets, will require not only regional coordination but also significant and innovative financing mechanisms. According to the Asian Development Bank (ADB), ASEAN will require a minimum of USD 100 billion by 2045 to build the necessary transmission infrastructure for APG. The broader energy infrastructure needs across the region could reach USD 764 billion, encompassing generation, transmission, and distribution.

In the ASEAN Power Grid Financing Dialogue (held in 2024), stakeholders emphasized the importance of:

• Blended finance structures

• De-risking mechanisms

• Public-private partnerships

• Multilateral development banks (MDBs) participation

Mobilising this level of investment will ultimately depend on how individual ASEAN member states translate regional ambition into local action. In a deep dive workshop, ADB representative Kathy Marsh noted, “ADB can readily commit 10 billion dollars towards the ASEAN Power Grid to speed up cross-border connections, national grid projects, and renewable energy initiatives.”

Several countries, including Malaysia, Singapore, and Vietnam, have already taken steps, piloting cross-border projects, advancing policy frameworks, and positioning themselves as pivotal players in the APG’s development.

Country Spotlight: Malaysia

Malaysia plays a crucial role in the ASEAN Power Grid, particularly through its involvement in the LTMS-PIP pilot project. Acting as both a transit and trading hub, Malaysia enables the transmission of renewable energy across borders. 

During the ASEAN Power Grid General Session, Deputy Prime Minister Fadillah Yusof emphasized the need for regulatory alignment, technical standardization, and a clear financing model to “The enhanced MoU must resolve three key issues—regulatory alignment, technical standardization, and financing—before it can be implemented under the Philippines’ Chairmanship next year.” (Video: ASEAN Power Grid General, ~5:48)

Malaysia is also eyeing long-term strategic investments in Vietnam’s offshore wind sector. During a state visit to Hanoi in July 2025, Prime Minister Anwar Ibrahim reaffirmed the country’s support: “Malaysia supports the idea of a cross-border power grid, especially involving Vietnam’s renewable energy potential through seabed cables.” (The Star, 2025)

Together, these efforts underscore Malaysia’s ambition to not only serve as a critical connector in regional energy flows but also shape the future of ASEAN’s low-carbon energy landscape.

Country Spotlight: Singapore

Singapore has positioned itself at the forefront of ASEAN’s clean energy transition. Building on its involvement in the LTMS-PIP pilot, the government is now laying the groundwork to significantly scale up electricity imports as part of a broader strategy to decarbonise its national grid and deepen regional energy integration.

At the ASEAN Power Grid Financing Dialogue, Eugene Tan, Assistant Chief Executive at the Energy Market Authority, said, “We have to awaken, align, and act... Trust in systems, trust in markets, trust in cooperation.”To support this vision, Singapore has committed to importing up to 4 gigawatts of low-carbon electricity by 2035, a substantial leap from the 100 megawatts currently transmitted through the LTMS-PIP. This forward-looking approach reflects Singapore’s ambition to lead the region’s clean energy transformation, while solidifying its role as a key hub for sustainable power trade in Southeast Asia.

Country Spotlight: Vietnam

Vietnam is rapidly emerging as a key renewable energy exporter in the region, underpinned by strong offshore wind potential in its southern provinces. The government is actively exploring subsea cable links to Malaysia and Singapore, positioning the country as a future supplier of clean energy across ASEAN.

At the ASEAN Power Grid General Session, Minister of Industry and Trade Nguyen Hong Dien emphasised the importance of regional connectivity in realising Vietnam’s energy ambitions: “We must ensure our grid is not only robust but regionally connected to maximise the benefits of our green energy transition.” (Video: ASEAN Power Grid General, ~9:20).

Vietnam is strengthening its domestic transmission infrastructure through partnerships with multilateral institutions, ensuring its internal grid can support future export capacity and align with the long-term objectives of the ASEAN Power Grid. These efforts underscore Vietnam’s dual strategy: strengthening domestic resilience while expanding its role as a regional provider of clean energy.

Next Steps & Regional Alignment

While individual countries continue to make significant strides, regional coordination remains essential to scale the ASEAN Power Grid in a timely and sustainable manner. Recognising this, the ASEAN Secretariat and ASEAN Centre for Energy (ACE) are working closely with the World Bank and Asian Development Bank (ADB) to advance key enablers of cross-border power trade. 

Through an exclusive interview with Nada S.Q., an academic from Telkom University specializing in energy systems, she emphasized that progress in regional power integration will stall without harmonized regulations, interoperable technical standards, and trusted mechanisms for data sharing. She also pointed to the role of university-led Living Labs as key drivers in aligning national and regional capacities for cross-border energy cooperation (Nada, 2025).

Their joint efforts are focused on:

• Prioritising interconnection projects based on readiness and return

• Developing clear and harmonised regulatory roadmaps

• Creating a digital platform to streamline coordination among stakeholders

• Exploring carbon credit mechanisms tied to cross-border renewable energy trade

In parallel, ASEAN Finance Ministers have endorsed the establishment of an ASEAN Power Grid Financing Facility, modelled on blended finance, to attract greater private sector participation and unlock long-term capital for regional infrastructure. These initiatives reflect a growing consensus that ASEAN’s energy future must be built not only on national ambition but also on shared frameworks that accelerate integration, innovation, and resilience.

Why it Matters

Beyond its technical complexity and political coordination, the ASEAN Power Grid represents a strategic solution to some of the region’s most pressing energy challenges. By enabling countries to pool resources, trade electricity, and tap into diverse renewable sources, the APG offers a pathway to a more secure, equitable, and sustainable energy future.

Conclusion

The ASEAN Power Grid is more than an infrastructure plan; it’s a regional cooperation framework that could transform how Southeast Asia powers its growth. With strong political will, innovative financing, and aligned regulations, APG can catalyze the energy transition, climate resilience, and economic competitiveness. “If we succeed, we will not just light up cities, but also connect economies and empower generations.” (Closing remarks, ASEAN Energy Dialogue, 2024) 

References:

ADB (Asian Development Bank) (2025) ADB estimates over US $100 billion for transmission infrastructure in Southeast Asia, ADB Southeast Asia Resource Page. Available at: https://www.adb.org/where-we-work/southeast-asia/asean-power-grid (Accessed: 14 July 2025).

ADB (Asian Development Bank) (2025) ADB President affirms support for ASEAN Power Grid, Press Release, 14 April. Available at: https://www.adb.org/news/adb-president-affirms-support-asean-and-accelerated-action-asean-power-grid (Accessed: 14 July 2025).

ADB (Asian Development Bank) & World Bank (2024) Mandate for ADB and WB to develop APG financing facility, Chairman’s statement, 9 October; 42nd ASEAN Energy Ministers Joint Ministerial Statement, 26 September. Available at: ADB's proposal pdf (Accessed: 14 July 2025).

ASEAN Secretariat, BERNAMA & ASEAN Finance Ministers (2025) ASEAN to explore blended and Islamic finance mechanisms for APG, Joint Statement, 12th AFMGM, 10 April. Available at: https://asean.bernama.com/news.php?id=2411229(Accessed: 14 July 2025).

Asia News Network (2025) Malaysia signs 100 MW Laos hydropower deal, ASEAN trade milestone. Available at: https://www.asianews.network (Accessed: 14 July 2025).

Eco-Business (2025) A minimum of US $100 billion needed to build transmission lines in ASEAN, 6 June. Available at: https://www.eco-business.com/news/asean-power-grid-needs- at-least-us100-billion-to-build-transmission-lines-adb/(Accessed: 14 July 2025).

Nada, S.Q. (2025, July 12). Expert consultation on ASEAN energy integration and policy gaps. ASEAN-BAC Special Energy Study Memorandum. 

US–ASEAN Business Council (2025) APG financing facility framework welcomed by ministers, ASEAN Power Grid Set for Major Leap, June. Available at: https://www.usasean.org/article/asean-power-grid-set-major-leap-forward-upcoming-ministerial-meeting  (Accessed: 14 July 2025).