Powering a Sustainable ASEAN: Regional Integration and Renewable Energy Policy Innovation for Clean Energy in ASEAN
Keywords:
ASEAN energy integration, ASEAN Power Grid, regional electricity market, Southeast Asia energy transition, renewable energy ASEAN, cross-border power tradingAbstract
Southeast Asia’s rapidly rising electricity demand—projected to increase by more than 40% by 2030—poses a critical challenge to the region’s climate commitments and long-term energy security. This challenge is compounded by continued reliance on fossil fuels, uneven renewable resource distribution, and persistent gaps in regional infrastructure and policy coordination. Although the vision of the ASEAN Power Grid (APG) has existed for decades, progress remains limited, with only 8 of the 18 priority interconnections completed, constraining the potential for efficient cross-border electricity trade and renewable energy integration. This policy paper, developed using William N. Dunn’s public policy analysis framework, examines the structural, institutional, and financial barriers to ASEAN energy integration and evaluates three strategic policy alternatives. It identifies a phased regionalism strategy—supported by targeted policy innovation—as the most viable pathway, balancing ambition with political and institutional feasibility. The proposed approach includes the establishment of an ASEAN Sustainable Energy Agreement (ASEA), development of harmonized grid codes and regulatory frameworks, implementation of a regional electricity market platform, and introduction of renewable energy certificate (REC) trading. The strategy is structured across three phases from 2025 to 2050, beginning with foundational agreements and pilot initiatives, followed by market expansion and institutional strengthening, and culminating in a fully integrated regional energy system. Forecasting analysis indicates that deeper regional integration could reduce overall electricity system costs by up to 12%, significantly lower carbon emissions, and enhance energy security through resource sharing and system flexibility. The paper emphasizes the importance of institutional capacity building, equitable cost-sharing mechanisms, and robust monitoring and evaluation frameworks to ensure effective implementation. With sustained political commitment and support from regional institutions such as ERIA and ACE, ASEAN has the potential to transition into a low-carbon, resilient, and economically integrated electricity market, advancing both regional cooperation and sustainable development goals.
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Copyright (c) 2026 Ibham Veza, Djati Wibowo Djamari, Kushendarsyah Saptaji, Fitra Ayuza, A. M. H. Syah Lubis, Ambagaha Kalpani Rasangika, Iswidodo, Andy Tirta
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