ASEAN’s Aim For Fully Integrated Power Grid By 2045 Ambitious But Achievable -- World Bank
KUALA LUMPUR, Oct 15 (Bernama) -- ASEAN’s goal to build a fully integrated regional power grid by 2045 is ambitious but achievable, said World Bank lead energy specialist Yussuf Uwamahoro.
He said the initiative aims to establish a fully connected grid across all 10 ASEAN member states by 2045, leading to a more resilient and sustainable power system that would enable the scaling up of renewable energy, strengthen energy security, and support the region’s decarbonisation pathway towards net zero by mid-century.
“Today, 27 years after the adoption of the ASEAN Power Grid (APG) by energy ministers in 1998, nine of 18 identified priority projects have been completed, providing about 7.7 gigawatts of cross-border capacity,” he said during a presentation at the ASEAN Energy Business Forum 2025 (AEBF 2025).
From an economic perspective, Yussuf said regional power trade allows countries with abundant and low-cost resources to export electricity, while others benefit from access to an affordable power supply. The shared market, he added, enhances overall efficiency and reduces generation costs across the region.
For ASEAN, he said, deeper integration through the APG could unlock similar or even greater economic gains, paving the way for a secure, low-carbon energy future.
“Energy security and interconnections provide backup supplies in times of shortage. When each country has a shortage, you can get electricity from another country, and you get a more reliable and resilient power system as a whole.
“No country stands alone when the region is connected. In terms of green energy, which is now the most driving force, integrated power systems make it possible to scale up variable renewables like solar and wind to allow the region to meet climate targets,” he added.
Yussuf noted that the APG is currently at an early stage of integration, while the World Bank classifies the next phase as “shallow integration”, where most countries are interconnected. “Electricity trade is mainly through bilateral power purchase agreements, as we saw in Laos, India, and Thailand, or Laos, India, and China, where powerful flows would depend on the seasonal subclasses,” he added.
Touching on green market integration, he said it would rest on five key pillars, including the harmonisation and coordination of planning and investment, in addition to infrastructure, to ensure that countries align their generation and transmission plans for timely and cost-effective cross-border project implementation.
He said technical and operational coordination is also crucial, involving the harmonisation of green codes, dispatch rules, and real-time operations to maintain grid stability. Also needed is the development of commercial arrangements and market designs that create fair pricing, trading, and settlement mechanisms to make power trade financially viable.
Yussuf emphasised the importance of institutional heritage, which includes establishing regional governance and regulatory frameworks to build trust, manage disputes, and ensure effective coordination. “Together, these pillars form a strong backbone, and those building blocks are the ones that are key in terms of infrastructure to make the regional integration happen,” he said.
-- BERNAMA
