Countries have to see benefits of Asean power grid for it to take off: Expert

For the Asean power grid to take off, countries need to have a clearer picture of the benefits of being connected, said sustainable finance expert Lisa Sachs on Oct 28.

- Chin Hui Shan

The director of the Columbia Centre on Sustainable Investment, which is part of Columbia University, said that a challenge with the implementation of the regional grid is that benefits have mainly accrued to countries where new renewable energy projects are being developed.

From the sidelines of the Singapore International Energy Week, where financing the energy transition is a major focus of discussions, she told The Straits Times: “For the success of a regional system, it's important that the other countries see the benefits that they will derive from being a part of it.”

Ms Sachs, whose team is collaborating with the Asean Centre for Energy to model the regional grid as an investable, integrated energy system, added that such a grid is compelling as it can support the growth of different sectors.

The Asean power grid is an interconnected grid that will allow countries in the region, where renewable resources are unevenly distributed, to trade electricity freely with one another.

This will provide a buffer against the intermittencies of renewable energy, which refers to the fluctuation of resources. For example, there could be little to no energy generated when the wind does not blow or the sun does not shine.

A US-Singapore study on energy connectivity in Southeast Asia released in 2024 had assessed that the grid can generate US$2 billion (S$2.6 billion) annually in research and development, and create as many as 9,000 jobs a year. Such roles would be in the renewables manufacturing sector, which includes cables and other related equipment.

Ms Sachs said that to reap the economic benefits, it is pivotal to have a framework that will address questions from member states on the opportunities that a regional grid presents, as well as how it could be funded.