Financing the ASEAN Power Grid

The Association of Southeast Asian Nations (ASEAN) has a long history of electricity system connectivity, and the development of the ASEAN Power Grid (APG) is central to achieving a secure, affordable and sustainable energy transition across the region. Delivering the APG will require a significant step‑change in investment over the coming 15 years, and unlocking financing from a diverse range of sources will be essential for this to happen. Yet financing approaches and business models have not evolved at the pace required to support an increasingly ambitious and complex pipeline of interconnector projects.

The IEA’s report on Financing the ASEAN Power Grid examines how interconnectors are approached today from the financing and business model perspective. It explores how, in combination with broad macro‑financial and market‑specific factors, current approaches may create challenges given the size and characteristics of the APG project pipeline. Rather than focussing on institutions or regulatory frameworks, this report approaches the issue through an investor’s lens – asking how these assets are financed in practice and what must change to make them bankable for a wide set of potential investors.

Join us to explore how the region can scale up investment into power interconnection to support the development of a secure, resilient and connected power grid.