Regional energy authorities should explore low-emission solutions for the ASEAN power grid, according to industry experts.
ASEAN Pushes for Decarbonisation of the ASEAN Power Grid
Thailand is considering bringing forward its deadline for achieving net zero emissions to 2050, joining most other ASEAN countries with similar ambitions. The ASEAN region is making significant strides towards a greener future, and the ASEAN Power Grid (APG) is at the forefront of these efforts.
The APG, a large-scale project aimed at integrating a low-carbon grid in the region, aligns with the region's goals of economic growth and increased energy supply while decarbonising. The APG aims to connect countries with varying power demand and renewable energy surplus, enabling regional renewable energy trade and supporting decarbonisation through optimization of low-carbon and renewable energy sources.
The ASEAN Centre for Energy (ACE), an intergovernmental organisation that serves as an energy think tank for Southeast Asian countries, is focused on advancing ASEAN's renewable energy goals, including the APG. ACE has been tasked to achieve a breakthrough on the APG this year.
However, a comprehensive study focused exclusively on APG decarbonisation pathways awaits a formal ASEAN leaders’ mandate to proceed. The push for this mandate is active and recognized as a critical next step to unlock low-carbon power grid planning and investment in ASEAN.
The APG concept has been around for over two decades, but experts see 2025 as the right time for a comprehensive decarbonisation study. Discussions and frameworks such as ASEAN’s Renewable Energy Long-term Roadmap and the APAEC Post 2025 Framework are currently evolving to strengthen regional renewable integration, which will feed into the broader APG decarbonisation goals.
The Lao PDR-Thailand-Malaysia-Singapore Power Integration Project, a prominent example of established interconnections in the ASEAN region, transports renewable hydropower from Lao PDR to Singapore. This project demonstrates the potential benefits of regional power integration and renewable energy trade.
Experts believe that an integrated low-carbon grid is crucial for a competitive industrial strategy in the ASEAN region. Achieving decarbonisation in the ASEAN region's energy sector could be the cheapest way if the countries work together as a group. Achieving nationally determined contributions (NDCs) to the Paris Agreement in a way that is affordable and fair is important for ASEAN countries.
Regional agreements allowing the trade in electricity across Southeast Asian countries are considered important for the APG. At least US$100 billion is needed to build more transmission lines for the APG. The main project ASEAN needs to realise is the interconnected grid as the backbone of an integrated energy system.
As of late July 2025, the APG decarbonisation study has not yet been officially mandated, but the call from experts for ASEAN to give this mandate to ACE is strong. The ASEAN region is poised to take a significant step towards a greener future with the APG, but the formal mandate from ASEAN leaders is the missing piece of the puzzle.
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- The ASEAN Power Grid (APG) aims to decarbonize while promoting economic growth, aligning with the SDGs and supporting the region's transition to clean and renewable energy.
- The ASEAN Centre for Energy (ACE) is tasked with achieving a breakthrough on the APG this year, as it forms a significant part of ASEAN's renewable energy goals.
- Experts believe an integrated low-carbon grid is crucial for a competitive industrial strategy in the ASEAN region, and achieving decarbonization could be the cheapest way if countries collaborate.
- The required funding for building transmission lines for the APG amounts to at least US$100 billion, and regional agreements permitting electricity trade across Southeast Asian countries are considered essential for the APG's success.
