ASEAN Leaders Press For Faster Action On Regional Power Grid

Regional energy leaders are pressing ahead with plans to deepen electricity interconnections across Southeast Asia, as surging demand, renewable energy growth, and the expansion of data centers increase pressure on national power systems.

The push comes as ASEAN works to turn the long-planned ASEAN Power Grid (APG) into a functioning regional electricity network, with member states seeking to share reserve capacity and renewable power while improving the resilience of their grids.

Warit Rattanachuen, deputy governor of Thailand’s Electricity Generating Authority, said ASEAN countries have been strengthening their domestic generation capacity, grid networks and fuel resources to support greater cross-border electricity trading.

“They can share the reserve capacity, including renewable energy, if they have their own. There are so many renewable energy resources there that can be shared through the ASEAN Power Grid,” Rattanachuen said at Enlit Asia 2026 in Indonesia.

He said electricity demand across the region continues to increase, partly because of the rapid expansion of data centers, with some facilities requiring more than 1 gigawatt of capacity. The growing adoption of electric vehicles is also adding to demand.

“When anything changes too fast, the grid is like the backbone to mitigate that,” Rattanachuen said.

Building Regional Connectivity

Ignatius Rendroyako, executive vice president of Indonesian state-owned utility PT PLN (Persero), said strengthening interconnection should be a key priority toward 2030.

ASEAN utilities need to develop stronger infrastructure linking their electricity systems while continuing to maintain and expand the capacity of their respective domestic grids, he said.

Akihiro Ondo, managing director and CEO of Mitsubishi Power Asia Pacific, said regional interconnection could improve the resilience of electricity systems across Southeast Asia.

The APG was first envisioned in 1997 and aims to connect the electricity networks of ASEAN member states by 2045. The initiative would allow countries with excess generation or reserves to supply electricity to neighboring markets while providing additional options for systems facing shortages.

ASEAN said in October 2025 that the broader initiative would require $764 billion in transmission and generation investments, particularly as the region increases its use of variable renewable energy. The World Bank Group has separately estimated the required investment at about $800 billion.

ASEAN currently has about 7.7 gigawatts of cross-border interconnection capacity and aims to double that amount by 2040.

The regional bloc has also launched a financing initiative with the Asian Development Bank and World Bank Group to help mobilize funding for the infrastructure needed to expand electricity connectivity.

Philippines’ Role

The Philippines is seeking to advance its own role in the regional power network as it holds the ASEAN chairmanship this year.

The government has been exploring potential electricity links with Indonesia through Tawi-Tawi, Sulu, Basilan and mainland Mindanao, potentially opening another route for cross-border power trade.

Energy Secretary Sharon Garin said the regional grid remains achievable, although its implementation will take time because participating countries still need to resolve technical, legal and financial issues.

“It is very much possible. It’s just down the line,” Garin said during an online media briefing.

The Philippines is pursuing the regional initiative while dealing with persistent domestic electricity supply constraints, making the development of stronger interconnections a potentially important component of its longer-term power strategy.

However, energy and climate advocates have cautioned against treating regional power trading as a substitute for strengthening the country’s own electricity system.

Larry Miguel Pascua, senior energy program officer of the Philippine Movement for Climate Justice, said the Philippines should first address weaknesses in its domestic grid and reduce its dependence on imported coal and gas.

“The APG will not solve our core crisis caused by decades of neglect of domestic renewable energy and over-reliance on imported coal and gas,” Pascua told Malaya Business Insight.

Pascua also warned that cross-border electricity trade could leave the country exposed to foreign supply decisions and geopolitical tensions. He said long transmission lines and subsea cables could face additional vulnerabilities during typhoons and earthquakes.

He called for greater investment in community-owned solar projects and microgrids, wider consumer ownership in electric cooperatives, and modernization of transmission and distribution infrastructure to accommodate more renewable energy.

With electricity demand continuing to rise and the region moving toward greater renewable energy use, ASEAN faces pressure to resolve the technical, regulatory, and financing issues that have slowed implementation while ensuring that expanded connectivity strengthens, rather than replaces, national power systems.

Source:

https://business.inquirer.net/612288/regional-execs-push-764-b-asean-grid-rollout

https://www.philstar.com/business/2026/09/23/2558143/urgent-action-sought-build-regional-power-grid

https://malaya.com.ph/business/business-news/ph-urged-to-strengthen-grid-before-asean-power-trade