Power
Southeast Asia fast-tracks regional power grid after oil supply shock
Southeast Asian nations are moving to accelerate the ASEAN Power Grid to reduce fossil fuel vulnerability following supply disruptions.
Key points
- Energy ministers agreed to speed up the delivery of the ASEAN Power Grid following oil and gas supply crunches.
- The International Energy Agency estimates $27 billion is needed to deliver cross-border interconnections by 2040.
- Singapore relies heavily on electricity imports and plans to secure low-carbon power through regional interconnectors.
What happened
Southeast Asian nations have renewed efforts to establish a connected regional power grid following supply disruptions caused by conflicts in the Middle East, Climate Home News reported. With oil and gas shipments through the Strait of Hormuz constrained, nations faced soaring prices, emergency energy-saving measures, and revived coal generation.
During a meeting in Manila, energy ministers from the Association of Southeast Asian Nations discussed expediting the ASEAN Power Grid. First conceptualised in 1997, the initiative aims to link national power networks to allow cross-border trading of clean electricity.
Why it matters
The region faces a projected $160 billion energy import bill this year, which could rise to $400 billion by mid-century under current policies, according to Climate Home News. Connecting grids allows countries with surplus renewable resources, such as solar, hydro, and geothermal, to share power with major demand centres like Singapore.
The International Energy Agency estimates that $27 billion is required to build the necessary cross-border interconnections by 2040. While nine of eighteen priority projects are currently operational, experts note that regulatory harmonisation and private capital mobilisation remain critical challenges.
What comes next
Governments are working on enhanced planning frameworks and regulatory guidelines to make bankable projects more attractive to private investors. Analysts warn that delays could increase fuel costs and risk locking in new fossil fuel infrastructure for decades.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Grids decide whether generation becomes power that homes and businesses can rely on. Generation mix, transmission and distribution losses, and tariffs together shape reliability and the case for investment.
91.9% of people worldwide had electricity in 2024Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
