ASEAN Power Grid
As ASEAN’s economy continues to grow, with an average projected GDP growth of 4.1%, the region’s energy demand is expected to increase by 260% by 2050 compared to 2022 levels. Ensuring a secure and stable electricity supply is critical, and the ASEAN Power Grid (APG) aims to achieve this through regional energy integration, enhanced grid infrastructure, and a unified power market. As of December 2024, nine of the 18 priority interconnection projects under the APG are fully operational, contributing a total interconnection capacity of 7.7 GW.
First proposed in 1997 under ASEAN Vision 2020, the APG was conceived as a long-term strategy to interconnect power systems, facilitate cross-border electricity trade, and enhance energy security. Over the years, it has evolved from bilateral and trilateral agreements towards a multilateral trading framework with a stronger emphasis on renewable energy integration.
ASEAN Power Grid Advancement Programme (APG-AP)
The ASEAN Power Grid Advancement Programme (APG-AP) is a strategic initiative designed to enhance regional energy security, affordability, and sustainability by advancing multilateral power trade and strengthening the APG. It fosters collaboration among ASEAN Member States (AMS), ASEAN bodies, and international partners to develop an integrated regional electricity market that supports the clean energy transition.
APG-AP aims to establish a low-carbon regional power interconnection with a functional multilateral power trading framework. It promotes renewable energy integration while reducing reliance on coal and fossil fuels. The programme also generates key knowledge products and insights to support decision-makers in accelerating energy sector decarbonisation. A core focus is developing a flexible, digitised transmission network to efficiently channel renewable energy across the region.
Launch and Objectives
The APG-AP was officially launched during the ASEAN Ministers of Energy Meeting in August 2023, to accelerate the integration of ASEAN’s electricity markets, facilitating cross-border electricity trade and decarbonisation. The program follows a stepwise approach, supported by analytical studies and a pilot project, to achieve a fully interconnected and sustainable regional power grid.
Key Collaborators
The APG-AP is a joint effort led by the ASEAN Centre for Energy (ACE) in collaboration with:
– Southeast Asia Energy Transition Partnership (ETP-UNOPS)
– United Nations Economic and Social Commission for Asia and the Pacific (ESCAP)
– The project Clean, Affordable and Secure Energy for Southeast Asia (CASE)
Key Components of APG-AP
Setting up of a Project Management Unit (PMU) within ASEAN Centre for Energy to improve coordination between APG partners.
Develop a stepwise roadmap to shift the APG from study stage to implementation along with the viable financing frameworks.
Perform three studies on multilateral power trade as part of ASEAN Interconnection Masterplan Study (AIMS III) Phase 3.
Develop a background assessment of potential pilot projects for multilateral power trade in coordination with relevant stakeholders and donors. Proposal development and financing facilitation
The APG-AP follows a structured approach consisting of the following key components:
Envision a realistic goal and identify the steps for multilateral power trade (MPT), with West and East sub-regions having the potential to advance as the MPT projects.
Provide a reference for the recent developments of MPT in ASEAN and recommendations based on extensive consultations and international best practices.
Help decision-making on resourcing technical and investment inputs throughout the planning, preparation, mobilizing financing, and implementation processes.
The State of Cross-border Power Trade in ASEAN
● Cross-border grid-to-grid power trade is primarily bilateral with a few MPT initiatives underway.
● Lao PDR, Thailand, Malaysia, Singapore – Power Interconnection Project (LTMS – PIP) (West Region) provides important lessons for potential successful MPT projects in ASEAN.
● Brunei Darussalam, Indonesia, Malaysia and the Philippines Power Integration Project (BIMP-PIP) (East Region) development gained momentum at the 41st ASEAN Ministers on Energy Meeting (2023) and could accelerate its progress.
● Existing challenges e.g., economic and power systems development, geographic complexities, and regulatory hurdles impede MPT development in ASEAN.
ACE Policy Briefs Based on the Roadmap
Policy Brief on Common Use Transmission Assets
Policy Brief on Financing Challenges
Policy Brief on Renewable Energy Certificates
Key areas include:
1. Minimum requirements for multilateral power trade in ASEAN;
2. Grid code and technical standards;
3. Integrated resource and resilience planning (IRRP).
Pilot Project: Implementing a pilot project, to showcase the feasibility and to explore advanced grid management and trade mechanisms.
APG Memorandum of Understanding (MoU): Facilitating the renewal and strengthening of the APG MoU to provide a legal basis for grid expansion and market integration.
Moving forward, APG-AP will continue strengthening regional cooperation through sustained government engagement, private sector participation, and support from international financial institutions. By overcoming regulatory and technical challenges, the program is poised to accelerate ASEAN’s transition to a sustainable and integrated power market.