ASEAN member states adopt three energy cooperation agreements at the ministers’ meeting. (Photo: AEBF)
The ASEAN Ministers on Energy Meeting (AMEM) opened in Kuala Lumpur, Malaysia, on Oct. 16, where ministers endorsed three regional cooperation initiatives aimed at strengthening the ASEAN Power Grid (APG).
The announcement came a day after the Asian Development Bank (ADB) and the World Bank Group (WBG) launched a new financing initiative pledging at least USD 10 billion to support cross-border green power infrastructure across Southeast Asia.
ASEAN Energy Ministers approve 3 cross-border cooperation plans
This year’s AMEM and the ASEAN Energy Business Forum (AEBF) were jointly opened in Kuala Lumpur, ahead of the ASEAN Leaders’ Summit scheduled for late October. In his opening remarks, Malaysian Prime Minister Anwar Ibrahim urged ASEAN nations to deepen partnerships and advance regional energy cooperation.
Anwar emphasized that the ASEAN Power Grid serves as the backbone of regional integration, connecting sustainability, security, and affordability. “With unity and purpose, we can balance the energy trilemma and power ASEAN’s growth with decades to come,” he said.
During the ceremony, three regional initiatives were adopted by the Energy Ministers:
- Enhanced Memorandum of Understanding (MoU) on the ASEAN Power Grid (APG) – Expected to accelerate cross-border interconnection and facilitate multilateral electricity trade, though detailed terms have yet to be released. RECCESSARY reached out to the ASEAN Centre for Energy (ACE) for comment but received no response yet.
- ASEAN Plan of Action for Energy Cooperation (APAEC) 2026–2030 – A roadmap focused on deepening regional collaboration and interconnection, enhancing energy security and resilience, and accelerating a sustainable and inclusive energy transition.
- ASEAN Framework Agreement on Petroleum Security (AFAPS) – Replacing the 2009 ASEAN Petroleum Security Agreement, this framework aims to ensure mutual supply and demand stability amid volatile oil and gas markets.
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Malaysian Prime Minister Anwar emphasized that the ASEAN Power Grid is the backbone of regional energy cooperation, connecting sustainability, security, and affordability. (Source: ASEAN Centre for Energy)
Financing the energy transition: ADB and World Bank step in
ASEAN’s power grid development has long been hampered by funding constraints. According to a joint study by the Heads of ASEAN Power Utilities/Authorities (HAPUA) and ACE, investments of up to USD 764 billion will be needed to build renewable generation and transmission infrastructure to support higher clean energy integration.
During the AEBF, the ADB and World Bank jointly launched the ASEAN Power Grid Financing Initiative (APGF), which offers a range of financing solutions for cross-border power projects. The ADB committed USD 10 billion, while the World Bank pledged an initial USD 2.5 billion under its Accelerating Sustainable Energy Transition (ASET) program.
In addition, the ASEAN Centre for Energy unveiled two updated publications, ASEAN Energy Investment (AEI) 2025 and the ASEAN Capacity Building Roadmap on Energy Investment, to guide member states in strengthening energy investment planning and promoting greater regional cooperation.
Source: ACE(1), (2), (3), Business Times
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