Tan Sue-Ern of the International Energy Agency (IEA) called for deeper cooperation among governments and investors to realize the ASEAN Power Grid.

This coordination is necessary to transform regional momentum into actual financing and infrastructure projects. Without a unified approach between utilities, regulators, and governments, the region risks failing to meet its escalating energy needs and climate goals.

Speaking during Ecosperity Week 2026 in Singapore in April 2026, Tan, who heads the IEA's Regional Cooperation Centre, said there is a need for a cohesive strategy. The initiative seeks to integrate renewable energy and improve energy security across Southeast Asia.

"Stronger cross‑border power connections are critical to meeting rising electricity demand, integrating more renewable energy and improving energy security," Tan said.

The ASEAN Power Grid is a multibillion-dollar plan [1] designed to link the power transmission networks of member countries by 2045 [2]. To support this transition, the Asian Development Bank launched a U.S.$25 million fund to accelerate the grid's development [3].

Despite this funding, the project faces significant hurdles. Turning high-level political momentum into bankable projects requires a alignment of regulatory frameworks and investment incentives. Tan said that the synergy between public regulators and private investors is the only way to unlock the capital required for such a massive undertaking.

The push for the grid comes as the region faces rising electricity demand and a need to pivot away from volatile energy supplies. By linking grids, member nations can share surplus renewable energy and create a more resilient regional system, reducing the impact of localized power failures.

“Stronger cross‑border power connections are critical to meeting rising electricity demand”

The transition from a conceptual regional grid to a physical reality depends on overcoming regulatory fragmentation. While the 2045 target provides a long-term horizon, the immediate challenge is creating a standardized investment environment that reduces risk for private capital, as public funds like the ADB's U.S.$25 million are insufficient to cover the total multibillion-dollar cost.