By Jin Wang
Building a sustainable ASEAN power market will require more than physical interconnections. Clear regulatory frameworks, bankable projects and sustained cross-border cooperation will be essential to turning regional electricity connectivity ambitions into commercially viable projects.
A SIEW Energy Insights panel moderated by Jason Mann, Senior Managing Director, FTI Consulting, examined how international experience could inform the development of the ASEAN Power Grid (APG), while addressing the region's distinct financing, regulatory and infrastructure challenges.
Interconnectors are key to energy security, resilience and decarbonisation
James O'Reilly, CEO, Greenlink Interconnector, explained that the rationale for interconnection has evolved beyond electricity price differences. Cross-border links can facilitate renewable energy integration, reduce curtailment and strengthen security of supply. They also provide flexibility when future demand and market conditions differ from forecasts.
Stephanie McGregor, CEO, Marinus Link, reinforced this perspective, highlighting how Tasmania's hydropower resources could support Australia's National Electricity Market as it transitions towards renewable energy.
Creating new opportunities for regional connectivity
Chua Shun Loong, Assistant Chief Executive, Energy Market Authority (EMA), highlighted how energy connectivity could complement ASEAN's existing trade, logistics and digital networks, supporting integrated green supply chains while creating investment and employment opportunities.
Dato' Ir. Hasmarizal Hassan, Chief Grid Officer, Tenaga Nasional Berhad (TNB), pointed to Malaysia's projected 6–8 gigawatts (GW) of on-grid data centre demand by 2032. He also outlined planned interconnections, including a second Malaysia–Singapore link and the Vietnam–Malaysia–Singapore project, which he noted had received conditional approval from Singapore.
Bankability depends on predictable revenues and clear risk allocation
Drawing on Europe’s experience, Mr O'Reilly identified three requirements for attracting private capital: long-term revenue visibility, clearly allocated risks and government support.
While investors can manage construction and operational risks, policy uncertainty and cross-border disputes require appropriate regulatory or contractual safeguards.
Mr Chua added that ASEAN cannot simply replicate international models developed in more mature electricity markets. Given the region's emerging infrastructure and contractual arrangements, regulators must also play a facilitative role in providing the clarity and certainty needed for project development.
Successful delivery requires regulatory coordination
Ms McGregor shared how Marinus Link navigated nine Acts of Parliament across three governments, alongside differing regulatory requirements and cost-allocation arrangements. She also emphasised the importance of engaging local communities, educational institutions and contractors early, including through training initiatives and local employment commitments, to ensure communities benefit from infrastructure development.
Securing electricity offtakers is key to financing regional interconnections
Dato' Ir. Hasmarizal stressed that large submarine cable projects require substantial upfront investment, making it important to establish competitive electricity costs and secure offtake commitments.
He highlighted the need for phased feasibility assessments and clearly defined investment checkpoints to manage risks before a final investment decision. Different interconnector projects, he noted, would also require financing approaches tailored to their scale and complexity.
Stay tuned as the conversation evolves throughout the day. Follow @SIEW_sg on Telegram and X (formerly Twitter) for key insights and the latest updates.
