Enabling Cross-Border Pumped Storage Hydropower Deployment: Addressing Bankability, Regulation, and Risk in ASEAN

Solar and wind are expected to supply much of ASEAN's new renewable capacity, but energy storage systems, particularly battery storage and pumped storage hydropower (PSH), will be essential for managing variability and maintaining grid stability. PSH, in particular, offers a cost-effective means of providing long-duration storage, balancing intermittent renewable generation, displacing demand, and managing seasonal and geographic mismatches between demand and supply.

ASEAN's PSH capacity is projected to reach 18 GW by 2033, requiring between US$12 billion and US$70 billion in investment. However, for cross-border PSH projects, bankability challenges are amplified by regulatory gaps, unclear allocation of costs and benefits across countries, and limited risk-mitigation mechanisms, all of which continue to constrain private sector participation and delay project development.

Building on the two previous panel discussions about ASEAN Power Grid held during the morning sessions, this panel will now bring together private sector investors, regulators, and risk-management institutions to examine the role of PSH in enabling the ASEAN Power Grid as a shared regional flexibility asset. Discussions will focus on bankability structures, cross-border regulatory and policy barriers, and available risk-mitigation solutions, while outlining a forward-looking pathway for scaling up PSH deployment to support regional power integration across ASEAN.