Last week in Kuala Lumpur, ASEAN energy ministers agreed to deepen cooperation on the ASEAN Power Grid (APG).  This is a landmark moment. A more interconnected ASEAN can accelerate the region’s energy transition, unleashing its abundant renewable resources and strengthening energy security and affordability.  As a Dialogue Partner of ASEAN and one of the most interconnected energy markets globally, the UK offers valuable expertise to support the next phase of ASEAN’s clean energy transition. 

Southeast Asia’s dynamic economy has driven rapidly rising energy demand. Energy policy must support legitimate ambitions for economic growth, poverty reduction, and improved living standards across the region. At the same time, transitioning away from coal is essential to mitigate climate risks and build long-term resilience. ASEAN member states are responding. According to the ASEAN Centre for Energy, if ambitious targets are fully met, renewables could supply over 70 percent of the region’s electricity by 2050 -- up from less than 30 percent today. Ensuring this transition is secure and affordable is a top priority for the governments of the region.

The ASEAN Power Grid is central to this vision. A regional initiative to interconnect national power systems, the APG will enable wind, solar, and hydroelectricity to flow more freely across national borders. The APG enjoys strong political and cross-sectoral support and offers wide-ranging benefits -- from energy security and reduced reliance on imported fuels to green growth, job creation, and improved public health.

In offering support, the UK draws on our own experiences of energy transition. The UK has reduced greenhouse gas emissions by 50 percent between 1990 and 2022, while growing the economy by nearly 80 percent. This month, we entered the second year of the UK power supply free from coal. A clear plan, including a legally binding 2050 net-zero target and a commitment to decarbonize the power sector by 2030, has driven record levels of private investment in clean energy. In ASEAN, independent estimates suggest that an economy-wide green transition could bring economic opportunities worth up to 5 percent of regional GDP by 2030.

The UK is also one of the most interconnected nations on the planet. Over 10 percent of electricity is now imported, and estimates suggest this could grow to 25 percent by 2035. The recently completed Viking Link linking the UK to Denmark is the world’s longest land and subsea interconnector. From the infrastructure of subsea cables to complex finance and regulatory systems required for cross-border power trading, the UK offers experience and expertise which can power ASEAN’s connectivity, and our world-leading private sector stands ready to support.

Delivering the APG will require substantial investment. ASEAN’s own most recent Interconnection Masterplan Study estimates at least $248 billion to mobilize the necessary financing needed for the energy sector by 2040.  The APG is a regional initiative but will need broader coalitions of governments, multilateral organisations, investors, and utilities to meet the levels of financing. 

The UK and partners are mobilising resources and expertise to respond to ASEAN’s energy transition challenge. The ASEAN Power Grid Financing Initiative -- bringing together the Asian Development Bank, the World Bank, the ASEAN Centre for Energy, and the ASEAN Secretariat -- launched at the ASEAN Energy Business Forum on 17 October 2025. The UK, with the EU and others, has contributed to a $6 million package mobilized by ADB, already enabling support for APG projects like the Sarawak-Singapore power interconnector. Working together with partners, through technical assistance and blending public finance with private capital, we can mobilize the finance needed for new infrastructure.

The ASEAN-UK Green Transition Fund -- our flagship platform for climate cooperation -- will bring targeted support and new partnerships on green grids, coal transition, and industrial decarbonisation through the newly launched energy transition portfolio. It will complement wider efforts to boost the flow of green finance into ASEAN and wider climate policy planning.

The ASEAN Power Grid is an achievable vision, requiring bold steps in cooperation, investment, and policy reform. As we approach the fifth anniversary of the UK-ASEAN Dialogue Partnership, we stand ready to support a just and inclusive energy transition that underpins ASEAN’s long-term prosperity.

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Helen Fazey is currently the UK Ambassador to ASEAN, based in Jakarta. The views expressed in this article are those of the author.

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