ASEAN Power Grid Expansion Faces Governance And Coordination Challenges—Report

A new report by energy think tank Ember has warned that Southeast Asia could face delays in connecting its regional power grids due to management and political challenges rather than technical limitations. The report focuses on the Association of Southeast Asian Nations (ASEAN) and its plans to expand cross-border electricity trade through a network of subsea power cables connecting member countries.

ASEAN is aiming to significantly increase its cross-border electricity transmission capacity from the current 7.7 gigawatts. To support this goal, the region has identified 18 major power interconnection projects that need to be developed by 2040. These projects are expected to improve energy security, enable greater use of renewable energy, and strengthen regional cooperation in the power sector.

However, Ember’s report highlights several key obstacles that could slow progress. One of the main concerns is the lack of a strong regional planning framework. Although ASEAN has already developed a master plan for power connectivity, there is currently no clear system to determine which projects should be prioritized or how investments should be coordinated among different countries. Without a structured planning mechanism, project implementation could become slower and less efficient.

Another major challenge involves the sharing of project costs. The report notes that the benefits of electricity interconnections are not always distributed equally among participating countries. Some nations may gain more advantages than others, making it difficult to agree on how construction and operational expenses should be divided. As a result, negotiations over financing arrangements can become lengthy and complex.

The report also points to maritime management issues as a significant barrier. Since many of the proposed power links will use submarine cables, they must pass through territorial waters, shipping routes, fishing areas, and zones occupied by telecommunications infrastructure. This creates the need for coordination among multiple government agencies and regulatory authorities, which can be difficult to achieve across different countries.

To address these concerns, Ember recommends that ASEAN quickly operationalize the planning functions of the ASEAN Power Grid initiative. The organization also suggests developing a transparent framework for calculating project costs and benefits to support fair cost-sharing arrangements. In addition, it calls for the establishment of a dedicated working group to oversee submarine cable development and maritime coordination.

According to the report, regional cooperation mechanisms already exist, but stronger coordination in regulation, financing, and ocean management will be essential for success. Ember points to Europe as an example, where 25 subsea electricity connections already help transfer large amounts of power across national borders.