Vietnam’s Prime Minister Pham Minh Chinh attended the ASEAN Future Forum, stating that energy transition is an urgent priority with ASEAN projected to become the world's third-largest economy by 2045. (Photo: Vietnam's Government News)
Southeast Asian leaders are calling for stronger regional collaboration to accelerate the energy transition, with Vietnam urging action at the ASEAN Future Forum in February and Singapore highlighting cross-border grid integration as key to decarbonization.
Southeast Asia, rich in renewable energy resources, is well-positioned to lead the global energy transition. According to RECCESSARY’s latest annual report, Vietnam has emerged as a frontrunner in renewable energy development among the six ASEAN nations, with cross-border energy trade seen as a key strategy to enhance energy security and advance sustainability.
Despite ASEAN's renewable energy capacity repeatedly hitting new highs, progress in energy decarbonization is still limited by the speed of policy implementation. (Chart: RECCESSARY’s annual report)
ASEAN accelerates energy transition, prioritizing infrastructure upgrades
Speaking at the ASEAN Future Forum on Feb. 26, Vietnam’s Prime Minister Pham Minh Chinh stressed the need for regional cooperation and greater economic resilience to strengthen strategic autonomy. He also underscored the importance of renewable energy, the green economy and digital transformation as pillars of ASEAN’s long-term economic growth.
Pham outlined three key measures to drive ASEAN’s energy transition:
1. Strengthen decision-making: Build a more flexible and efficient governance structure while maintaining consensus-based principles to accelerate green policies.
2. Enhance public-private partnerships: Attract private investment and expand clean energy infrastructure by removing trade barriers, ensuring digital economy security, and promoting green technologies.
3. Promote regional connectivity: Advance cross-border infrastructure development and regulatory alignment, and simplify administrative procedures to encourage clean energy investment.
Pham stressed that with ASEAN expected to become the world’s third-largest economy by 2045, accelerating the region’s energy transition is essential. He said ASEAN should take the lead in clean energy solutions, embrace circular economy principles, and position itself as a strategic manufacturing hub in global markets.
However, ASEAN continues to face obstacles in its energy decarbonization efforts. RECCESSARY’s report notes that progress has been slowed by delayed policy implementation and infrastructure limitations. Over the past two decades, emissions from the region’s power sector have remained largely unchanged, as the growth of renewable energy has been offset by the expansion of fossil fuel capacity. The report identified infrastructure upgrades and regulatory reforms as key challenges that Vietnam and ASEAN will need to address in 2025.
Energy structure and electricity emission factors in the ASEAN. (Chart: RECCESSARY’s annual report)
ASEAN’s energy demand to double by 2050, making regional grid integration essential
In addition to Vietnam’s call for deeper regional energy cooperation, Singapore is also pushing for stronger cross-border collaboration. In a February op-ed published by the Atlantic Council, Chief Executive Puah Kok Keong of Energy Market Authority (EMA) emphasized that regional grid integration is essential to Southeast Asia’s energy transition.
Citing data from the ASEAN Centre for Energy (ACE), Puah noted that the region’s energy demand is expected to more than double by 2050 from 2022 levels. To address this surge while ensuring both energy security and climate goals, strengthening regional power connectivity has become essential. In this context, the ASEAN Power Grid (APG) initiative plays a pivotal role by linking renewable-rich areas with high-demand centers, thereby promoting energy diversification and enhancing system resilience.
Singapore's energy mix in 2023. (Chart: RECCESSARY’s annual report)
That vision is starting to take shape. According to RECCESSARY, cross-border energy trade is becoming a vital strategy for energy security and resource efficiency. In 2024, Singapore completed its first import of 100 MW of hydropower under the Laos–Thailand–Malaysia–Singapore Power Integration Project (LTMS-PIP) and now plans to double the capacity to 200 MW and extend the import license through 2026.
Long-term power purchase agreements (PPAs) are also gaining momentum across ASEAN to drive renewable investment. For instance, Malaysia’s ENEGEM platform recently facilitated a two-year, 50 MW renewable energy deal between Sembcorp Power and Tenaga Nasional Berhad (TNB), supporting emissions reduction and regional market growth.
Singapore deepens global energy partnerships to advance cross-border power trade
Puah noted that Singapore is supporting projects from Australia, Cambodia, Indonesia and Vietnam, with plans to import 7.35 GW of low-carbon electricity. The country is also collaborating with international partners, including the U.S. and Japan, to accelerate the adoption of clean energy technologies and mobilize investment.
As part of these efforts, the inaugural Singapore-U.S. Forum at the 2024 Singapore International Energy Week focused on advancing low-carbon solutions such as hydrogen, aiming to strengthen both regional and global cooperation.
RECCESSARY’s report forecasts further progress in cross-border energy trade in 2025. Singapore’s EMA plans to expand the LTMS-PIP initiative, pursue larger-scale projects and sign long-term agreements with ASEAN partners covering solar, wind and other renewable sources to ensure stable supply.
However, the report noted that ASEAN must overcome challenges related to large-scale investment and grid infrastructure, which will ultimately shape the pace of the region’s energy transition.
Source: SOLARQUARTER, Atlantic Council, Vietnam's Government News, Southeast Asia Renewable Market x Global Carbon Trends: 2024 Review & 2025 Outlook
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