S2E17: Why is everyone talking about an Asean power grid?

Jun 2, 2025

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A regional power grid could help bring clean power to people. But huge challenges remain.

Synopsis: Every first and third Tuesday of the month, The Straits Times analyses the beat of the changing environment, from biodiversity conservation to climate change.

Rapidly growing Asean is hungry for power to keep its economies humming. With electricity demand growth of 3 to 4 per cent a year, meeting that demand is a costly challenge for governments in the region.

A regional grid, long-talked about, could help the region meet its energy needs while also putting a lid on growing carbon emissions that are heating up the planet. The regional grid could shift power around the region, helping move green electricity to countries less able to produce it.

And the grid is becoming a reality, with Singapore’s demand for low-carbon electricity imports helping drive investment. But wiring up the whole region will be expensive and large hurdles remain, including stronger policy support from regional governments, guaranteed power purchase agreements and lack of regional power trading networks.

Join Green Pulse hosts Audrey Tan and David Fogarty as they discuss these questions in this episode.

Have a listen and let us know your thoughts!

Highlights of conversation (click/tap above):

1:52 The ASEAN power grid was first floated as an idea in 1997 but languished for years.

3:16 What are the key turning points that are helping make the grid a reality?

6:26 Lower air pollution, cheaper power are just some of the potential benefits

9:54 But high upfront costs of wiring up the region is a key challenge

14:48 What are some of the other challenges?

21:41 Blended finance and other funding sources are needed to come together to lure investors

Follow Audrey Tan on LinkedIn: https://str.sg/848W

Read her articles: https://str.sg/JLM2

Follow David Fogarty on LinkedIn: https://str.sg/jcvy