Philippines Pushes Faster ASEAN Power Grid To Shield Region From Energy Crises
- November 3, 2026
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The Philippines is backing efforts to accelerate the development of the ASEAN Power Grid (APG), which could give the country access to electricity from neighboring markets during supply shortages while opening opportunities to export surplus renewable energy.
The initiative gained momentum following renewed cooperation between the Philippines, Singapore, and the United States to advance cross-border electricity trading and identify financing mechanisms for regional transmission projects.
Energy Secretary Sharon S. Garin said the Philippines would continue working with ASEAN member states to establish an interconnected electricity network that would allow countries to share available resources and respond collectively to supply disruptions.
“No country in this region can insulate itself from every shock. Resources and demand profiles complement each other and that is our advantage. Where one system is short, another has surplus. Working together, we widen our supply options and respond to disruptions as a region and not alone,” Garin said.
The APG aims to connect the electricity networks of the 10 ASEAN member states, enabling cross-border power trading and supporting the region’s long-term energy security. The initiative has a target completion date of 2045 and is estimated to involve an $800-billion regional grid network.
ASEAN Centre for Energy Executive Director Dato Razib Dawood urged member states to accelerate preparations, particularly the development of regulatory frameworks and commercial arrangements needed to make regional electricity trading possible.
“Everyday that we wait, everyday that we waste. We miss the opportunity. Are we going to wait for the next crisis? So you have to get ready for the next crisis,” he said.
Philippines-Singapore Cooperation
As part of the push, the Philippines and Singapore have exchanged letters of intent to explore bilateral electricity interconnection and cooperation in nuclear energy development.
Garin and Singapore Energy, Trade and Industry Minister Tan See Leng signed the agreements, which provide for discussions on cross-border electricity trading and the exchange of nuclear expertise.
The proposed electricity partnership would allow both countries to examine opportunities to make better use of complementary energy resources. They may also engage companies with credible proposals to assess the technical, economic, financial and commercial viability of potential interconnection projects.
Establishing electricity links with Singapore and other regional markets could provide another source of supply for the Philippines when domestic generation becomes constrained.
However, unlike mainland Southeast Asian countries, the Philippines would need submarine transmission cables to connect its electricity system with neighboring markets.
Singapore and the United States are also supporting the development of the APG through a feasibility study examining the legal, governance and financing arrangements needed to advance regional electricity connections.
The study’s second phase, launched in October 2024, identifies regulatory alignment, regional governance and cost-sharing mechanisms as key requirements for making submarine interconnection projects commercially viable.
Preliminary findings are expected to support the ASEAN Submarine Power Cable Development Framework, with the final report scheduled for release by early 2027.
Infrastructure And Regulatory Hurdles
Despite the potential benefits, officials said the construction of submarine transmission infrastructure remains a major obstacle.
Dawood pointed to limited manufacturing capacity for subsea cables, noting that suppliers in China, Japan and South Korea face strong demand and lengthy order backlogs.
“Subsea cable is special, not many people can manufacture…We just discovered that the supply chain issue, when you want to order long kilometer of subsea cable, only limited manufacturer… But they are fully booked, their order book is so long…It’s an issue,” he said.
Financing arrangements and the commercial terms governing electricity transactions must also be established. These include determining project profitability, securing bankable agreements and developing common market mechanisms for power trading.
Garin said physical connections alone would not guarantee successful regional integration because countries operate under different legal and technical requirements.
“It’s not like you just build a cable and then we buy, we buy from each other. No, because it’s different jurisdictions… In fact, technically there could be a difference like voltage or quality of electricity. So it has to be synchronized,” she said.
Existing cooperation among mainland countries provides a foundation for the initiative. The Lao PDR-Thailand-Malaysia-Singapore Power Integration Project already facilitates cross-border electricity trading, although extending similar arrangements to island nations presents greater technical and financial challenges.
Puah said advances in technology could eventually reduce the cost of submarine connections, while renewable energy investments linked to the grid could generate employment, investment income and export revenues.
Nuclear Cooperation
The Philippines and Singapore also plan to expand cooperation in nuclear energy through information exchanges, technical expertise sharing and research collaboration.
The Philippines is targeting at least 1,200 megawatts of nuclear capacity by 2032, increasing this to 2,400 MW by 2045 and 4,800 MW by 2050 under its Philippine Energy Plan.
The Department of Energy is also preparing the rules for bidding on the country’s first nuclear power projects as it seeks to diversify the national energy mix and strengthen long-term supply security.
During the 44th ASEAN Ministers on Energy Meeting in Manila in October, member states also reached a consensus to advance the regional grid through an enhanced memorandum of understanding.
Garin said the Philippines would remain committed to the initiative, stressing that regional cooperation must translate into compatible regulations, viable investments and functioning electricity connections.
“The Philippines will keep working with every member state until the grid is operated,” she said.
Source:
https://tribune.net.ph/2026/10/28/regional-power-trade-offers-phl-supply-safety-net
