Manila, 14 October – ASEAN could avoid $2.3 billion in economic losses by 2040 if it strengthens its electricity systems to match surging demand and rapidly expanding renewables. A new report from energy think tank Ember shows that investments of between $4 billion and $10.7 billion in smart grid infrastructure are needed to modernise the region’s networks.
At the lower end of the range – around $4 billion – investment would deliver essential upgrades such as smart meters and automated controls, laying the foundation for more reliable and resilient grids. At the upper end, $10.7 billion would enable a fully optimised, future-ready system, unlocking the region’s full clean energy potential through advanced digitalisation, storage, and cross-border interconnection.
Much of the investment needs lies in large and fast-growing economies such as Indonesia, Vietnam, and the Philippines, where outages impose the highest costs. Meanwhile, Singapore and Malaysia are already advancing digital grid strategies, showing what can be achieved with early action. This diversity underscores both the scale of the challenge and the opportunity for knowledge-sharing across ASEAN.
