Wired for profit: Grid is the key to unlock ASEAN energy investment
Grid is the driver to unlock solar and wind markets and provide opportunities for fossil-dependent countries to be renewables exporters.
15 May 2025
32 Minutes Read
Table of Contents
Executive summary
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Key takeaways
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Supporting materials
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Highlights
30 GW
Solar and wind potential that can be harnessed along interconnection routes.
+26%
Potential rise in solar and wind generation share in Sumatra, Sarawak, Lao PDR, Cambodia, Brunei by 2030.
~182k
New jobs that could be created from these new solar and wind projects.
Executive summary
Shaping ASEAN’s clean, secure energy future with grids
Modern, flexible grids are essential to unlock ASEAN’s solar and wind potential, create new jobs and new market opportunities.
Rising solar and wind generation, as well energy demand from data centres and transport electrification is expected to take place in the region in the near future. This calls for a greater action on grids and interconnections to accelerate renewables build and bring various economic benefits such as jobs.
Most ASEAN countries have historically been fossil fuel dependent, but the energy landscape is rapidly changing. By 2030, solar and wind generation are projected to account for around 23–25% of the power mix, up from just 4% today. To realise this transition, grid infrastructure must evolve – becoming more modern, flexible and regionally integrated, and integrate six pillars that a good future grid development plan should include. Stronger grids can be achieved through comprehensive grid planning that include modernisation, expansion, adoption of flexibility options, regional integration, market reforms, and mobilisation of finance.
Some ASEAN countries have started to embed these priorities in their respective national energy policy. Yet, a stronger push for action from policymakers could help in securing finance and building investor confidence in grid infrastructure. To date, only Cambodia, Malaysia and Singapore have signed the Global Energy Storage and Grids Pledge, which aims to deploy 1,500 GW of energy storage and 25 million kilometres of grid infrastructure globally by 2030. Grid development plans across ASEAN vary according to geographical landscape and require more data availability to assess whether their scale aligns with member governments’ climate and clean energy goals.
ASEAN countries vary widely in their clean energy potential, with some having abundant capacity for solar and/or wind and others blessed with hydro and geothermal resources. For hydro-rich locations such as Borneo island and countries along the Mekong rivers, increased variability in hydro generation due to seasonal variations necessitates the diversification of renewable energy sources. Regional grid interconnection holds the key to using these resources in combination, boosting renewables use and economic growth.
Expediting the pace of connectivity could increase GDP across ASEAN by 0.8% to 4.6% and unlock a bigger market. To date, the development of multilateral power trade in ASEAN has been limited to several projects: the Lao PDR – Thailand – Malaysia – Singapore Power Integration Project (LTMS-PIP), and early initiation of Brunei Darussalam, Indonesia, Malaysia and the Philippines Power Integration Project (BIMP-PIP). To encourage further collaborations, proposed reforms include better coordinated planning for regional power trade arrangements.
Managing electricity grids and incorporating flexibility management strategies are vital to ensure a reliable energy system. This report accesses the strengths and challenges of key clean flexibility options, including pumped hydro, battery storage, demand-side management, as well as grids and interconnections for better insights.
To provide further insights, we also highlight experiences from European and South African power market structures to illustrate different trade mechanisms. These cases illustrate that interconnections can drive greater renewable energy penetration, enhance social welfare and improve security of supply to meet rising demand.
Ultimately, the focus should not be on whether ASEAN replicates other market models, but on building a resilient and connected market where solar and wind can be solutions for ensuring energy security.
The role of the grid is more than just moving electricity. In ASEAN, a stronger and interconnected grid can create a robust renewable energy market, connecting countries, uplifting communities, and bringing clean energy to the darkest corners. Grid upgrade, coupled with clean flexibility tools can better prepare ASEAN for a renewables-based future.
Thanks to Ember for their important new analysis of ASEAN’s energy future. As the report emphasizes, ASEAN’s future lies in a state-of-the-art energy system built on green and digital technologies and an ASEAN-wide integrated market for clean, green power. This report will be of great use to ASEAN as it adopts bold operational plans in the coming year.
Professor Jeffrey Sachs
President of the UN Sustainable Development Solutions Network
President of the UN Sustainable Development Solutions Network
Energy security is national security. The ASEAN region is therefore understandably accelerating its build-out of competitively priced and zero-emissions renewable energy this decade. EMBER’s report is particularly welcome to highlight the role of a flexible, modern grid in carrying green electrons from regions with abundant supply of land, water, solar and wind, to major demand centres and the many industrial and data centre zones in the region.
Dr Assaad Razzouk
Gurīn Energy
Gurīn Energy
Key takeaways
01
ASEAN transmission grid expansion needs to roughly double to align with the IEA pathway
Between 2023–2030, Indonesia, Viet Nam, the Philippines and Thailand plan to add 45,076 km of transmission lines, accounting for roughly 45% of the scale envisaged in the International Energy Agency’s (IEA) grid Announced Pledges Scenario. This indicates that roughly double the transmission expansion to 2030 required to deliver national clean energy and climate targets still needs to be planned.
02
The planned ASEAN grid routes are home to 30 GW of solar and wind potential
As much as 24 GW of solar and 5.6 GW of wind potential are located in Riau islands and Sumatra (Indonesia), Sarawak (Malaysia), Cambodia and Brunei, locations of some existing and planned new interconnection projects. The electricity generated from these potential projects could be shared with demand centres, providing a larger range of generation capacity from clean energy to meet future demand.
03
Regional collaboration can enable a robust renewable energy market in ASEAN
Collaboration can fast-track interconnection projects, create a renewable energy market, and leverage the diverse energy potential of ASEAN countries. Examples from Europe and the Southern African Power Pool (SAPP) show that interconnection projects managed by a regional coordinating association, such as ENTSO-E for Europe or the SAPP Coordination Centre, can accommodate sharing of resources and improve social welfare.
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