With a population exceeding 680 million people, Southeast Asia is experiencing accelerated economic growth, leading to rising energy demand, and higher susceptibility to climate change. Projections indicate that the region's energy requirements will expand by at least 40% by 2050 primarily fueled by its robust economic growth, demographic expansion, and its role as a key center for global manufacturing and industry. However, the region faces significant challenges, including its heavy reliance on fossil fuels, infrastructure limitations, and the growing impacts of climate change. For instance, fossil fuels currently account for nearly 80% of its energy mix, exposing the region to price volatility and supply disruptions. Furthermore, Southeast Asia is highly vulnerable to extreme weather events and rising sea levels, posing significant threats to energy infrastructure and the entire energy value chain.

The ASEAN Power Grid (APG), a flagship initiative under the ASEAN Plan of Action for Energy Cooperation (APAEC), offers a solution to these challenges5. By interconnecting national grids and facilitating cross-border electricity trade, the APG is expected to enhance energy security, promote renewable energy integration, and foster regional economic cooperation. ASEAN leaders envision a fully integrated APG by 2045, building on bilateral and multilateral power agreements and developing grid infrastructure for sustainable and affordable electricity among the participating countries.

This panel will explore the benefits and challenges of APG, while discussing the way the initiative will contribute to sustainable and resilient outcomes.