KUALA LUMPUR, The ASEAN Power Grid (APG) is entering a new phase of growth, with a focus on developing longer regional interconnections essential for delivering renewable energy across Southeast Asia, said Energy Commission chief executive officer Siti Safinah Salleh.
She said the key challenge now lies in financing and development risks, as many of the upcoming projects involve subsea power interconnections spanning up to 700 kilometres.
According to Siti Safinah, most of these cross-border initiatives are led by private developers rather than system off-takers, which increases the revenue risk and makes securing financial backing more complex.
“We need to firm up the off-taking arrangements and strengthen the requirements from off-takers. That is a very crucial part of the ASEAN Power Grid,” she said during a session titled “Accelerating Energy Transition Investment” at the ASEAN Energy Business Forum held here today.
She added that the foundational elements of the APG’s governance framework and technical standards have already been established, and efforts are now focused on building upon these frameworks to ensure consistency and long-term viability.
Meanwhile, Asian Development Bank (ADB) Southeast Asia Green Finance Hub head Scott Roberts said the region faces a financing gap of around US$200 billion (US$1 = RM4.22) annually to meet its climate and energy transition goals. This highlights the urgent need to scale up sustainable finance and attract more private sector participation. 
Roberts said ADB’s strategy is to catalyse private capital by developing scalable investment models that enable markets to operate independently. Through its green, social, sustainable, and other thematic bond programmes, ADB has advised approximately US$4 billion in ASEAN local currency issuances, which have subsequently spurred follow-on issuances worth between US$13 billion and US$14 billion.
He added that these initiatives have strengthened market confidence and laid the groundwork for greater private sector involvement in funding the region’s energy transition and infrastructure development.
