IEA - International Energy Agency

09/30/2025 | Press release | Distributed by Public on 09/30/2025 08:51

Driving global and regional collaboration to realise the ASEAN Power Grid vision

While there are technical issues in interconnecting power systems, the biggest challenges for the success of the APG are political, regulatory and institutional. Sustained political commitment underpinned by effective coordination mechanisms will ultimately determine whether the APG fulfils its potential. Clear and consistent policy signals backed by long-term commitments are needed to attract private sector investment and accelerate implementation of cross-border infrastructure. Moving forward requires sustained dialogue and coordinated implementation with clear priorities and timelines.

Institutional arrangements for the APG remain somewhat fragmented. The APG involves multiple actors and layers of governance yet lacks streamlined co-ordination mechanisms. Enhanced coordination among ministries, utilities, regulators and regional bodies is essential to support the implementation of the APG.

The absence of a unified regulatory body and limited co-ordination among APG-related bodies, including the Heads of ASEAN Power Utilities Authorities, the ASEAN Power Grid Consultative Committee and the ASEAN Energy Regulatory Network, exacerbates implementation challenges. Although existing regional bodies provide platforms for dialogue and collaboration, efforts are constrained by limited resources and no mandate for implementation.

Experiences from other regions show that these challenges can be overcome. Continental Europe, the Central America Electrical Interconnection System and the Southern African Power Pool demonstrate that effective institutional arrangements and sustained political co-ordination can support cross-border power trade.

Given the current institutional landscape in ASEAN, establishing a dedicated institutional mechanism such as an APG Secretariat could ensure continuity, strengthen inter-agency co-ordination and preserve institutional memory.

Building mutual trust and demonstrating the value of cooperation is critical. Regional integration requires transparency, sustained political engagement and confidence-building efforts. Innovative measures such as the development of a regional framework for renewable energy certificates trading, are fostering new forms of co-operation, while regional initiatives like the ASEAN Interconnector Masterplan Study III Phase 3 and the APG Stakeholders Coordination Meeting are positive steps for trust-building, fostering the dialogue and coordination for AGP implementation.

Building on this collaborative momentum, sustained political leadership and coordinated efforts from ASEAN governments and strategic partner can advance the APG's potential as a cornerstone of Southeast Asia's energy transition and connectivity agenda.

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