“Most importantly, these institutions will not only finance projects from their own balance sheets but will also catalyse substantial private-sector funding for APG-related projects,” he told Bernama today.

On Oct 15, the ADB and the World Bank Group, in cooperation with ASEAN, launched the APG Financing Initiative to support the development and integration of national power grids across the region.

ADB’s director for South Asia Development, Winfried F Wicklein, said the bank has committed US$10 billion to finance the ASEAN grid related to the APG, in addition to clean generation projects and preparatory support such as loans, grants, technical assistance, and blended finance.

According to Woo, momentum for the APG stemmed from early bilateral efforts in the 1970s, which were first formalised in 1997.

After successfully guiding early development for fifteen years, the APG’s foundational memorandum of understanding (MOU) was recently reinforced and ratified at the 43rd ASEAN Ministers on Energy Meeting (AMEM) in October 2025.

Woo, who is also a visiting professor at the Institute of Advanced Studies, University of Malaya, said that a renewed focus on robust regional planning is key to unlocking the region’s clean energy potential.

“An integrated market will enable greater use of renewable energy, balance supply and demand across borders, and ensure better energy security.

“This will not only reduce carbon intensity and costs but also build resilience for the entire region against climate shocks, fuel price volatility, and geopolitical risks,” he said.

APG is a cooperative initiative among ASEAN member states aimed at connecting regional electricity grids.

-- BERNAMA