A new analysis from Ember reveals that an interconnected, modernised grid network could unlock 30 GW of untapped solar and wind potential, serving as a catalyst for economic growth, job creation, and long-term energy security across Southeast Asia.
Between 2013 and 2023, electricity demand in Southeast Asia grew by approximately 50 percent, rising from 817 TWh to 1,277 TWh, with Indonesia, Viet Nam, Thailand, and Malaysia accounting for the majority of this increase. By 2030, demand is projected to grow by a further 41 percent, intensifying the need for advanced grid planning.
Utilities are under pressure to expand infrastructure, requiring more transmission lines and substations to support energy connectivity. Aging grids are being upgraded with high-capacity and high-voltage lines to enhance regional energy security and flexibility. While traditional grid investments in ASEAN aimed to meet peak demand and ensure cost-effective delivery, current priorities now also include economic and climate goals.
Electrification of heat, transport, and industry is accelerating electricity use, while the declining costs of wind (down 55 percent) and solar power (down 85 percent)—as well as battery storage (also down 85 percent)—are transforming grid planning to accommodate renewable integration and supply variability. Globally, the IEA estimates over 80 million kilometers of grid infrastructure must be added or refurbished by 2040 to support the energy transition.
By 2030, the Global Energy Storage and Grids Pledge targets 1,500 GW of energy storage and 25 million kilometers of new grid infrastructure. For Southeast Asia, the IEA projects the addition of 1.7 million kilometers of grid by 2030, with 6 percent being transmission lines and 94 percent distribution lines.
The Grid as a Catalyst for Clean Energy Transformation
Historically reliant on fossil fuels, ASEAN is undergoing an accelerated energy transition, with solar and wind expected to rise from just 4 percent of the power mix today to at least 23 percent by 2030. Achieving this target will require overcoming the intermittency of renewables and delivering electricity across borders to where it is needed most. Ember’s analysis argues that a well-connected, flexible grid is no longer optional — it is essential.
The regions along the proposed interconnection corridors alone hold 30 GW of renewable potential. Tapping into this can power millions of homes and businesses, support regional development, and reduce dependence on imported fossil fuels. Grid expansion, paired with clean energy buildout, is projected to generate approximately 182,000 jobs across the region — delivering economic gains alongside environmental benefits.
Flexibility: The Backbone of a Clean Energy System
Ember’s report goes beyond just grid hardware, emphasizing the full suite of flexibility solutions —pumped hydro, battery storage, demand-side management, and cross-border interconnections — as critical tools to manage renewable variability. These mechanisms allow power systems to shift supply and demand more dynamically, ensuring grid stability even as the share of intermittent renewables rises.
With electricity demand surging — driven by data centre growth, industrialization, and transport electrification — the report underscores the urgency of comprehensive grid planning. Flexibility will not only help balance the grid, but also minimize curtailment of renewable generation, maximizing returns on clean energy investments.
ASEAN’s Grid Lag and the Infrastructure Gap
Despite ambitious national energy strategies, ASEAN’s transmission infrastructure remains insufficient. Between 2023 and 2030, Indonesia, Vietnam, the Philippines, and Thailand aim to add over 45,000 km of transmission lines. But this only covers 45 percent of the expansion needed under the International Energy Agency’s (IEA) “Announced Pledges” scenario. Meeting climate and energy goals would require at least double that by 2030.
Moreover, regional commitment remains fragmented. Only Cambodia, Malaysia, and Singapore have joined the Global Energy Storage and Grids Pledge. Stronger coordination among ASEAN nations is necessary to unlock finance, attract private investment, and create a robust, integrated electricity market.
Digital and Market Integration: The Next Frontier
The Ember report makes clear that ASEAN’s energy future cannot be built with wires alone. Real progress will require digital infrastructure for cross-border data sharing, regulatory harmonization, and open electricity markets. These elements are crucial to integrate electric vehicles, smart grids, and demand response systems—hallmarks of a modern energy ecosystem.
Dr. Dinita Setyawati of Ember emphasizes this point: “The role of the grid is more than just moving electricity. It’s about connecting countries, uplifting communities and bringing clean energy to the darkest corners.” Her sentiment is echoed by global experts like Prof. Jeffrey Sachs and Dr. Assaad Razzouk, who view ASEAN’s energy transformation as both a security imperative and an economic opportunity.
Conclusion: A Defining Decade for ASEAN’s Energy Future
The window of opportunity is clear: with 30 GW of renewable potential ready to be activated along the grid routes, and with rising electricity demand across the region, ASEAN stands at an inflection point. A coordinated investment in modern, flexible grid systems can deliver clean, affordable, and reliable electricity to its 680 million citizens.
But this vision requires political will, regional unity, and financial innovation. If ASEAN leaders can overcome institutional inertia and act decisively, the region can become a global model for clean energy integration and resilient economic development in the Global South.
GreentechLead.com News Desk