Malaysia

ASEAN to advance power grid integration with new cross-border agreement

Regional ministers to formalise updated energy cooperation deal next month, focusing on interoperability, trade, and shared standards

Updated 10 months ago · Published on 25 Sep 2025 5:18PM

ASEAN to advance power grid integration with new cross-border agreement
MoU centres on achieving full interoperability, including harmonisation of technical standards, regulations, and power trading models across member countries - September 25, 2025

ASEAN member states are set to fast-track regional energy integration with the signing of an upgraded implementation agreement for the ASEAN Power Grid (APG) at the ASEAN Ministers on Energy Meeting (AMEM) next month.

Deputy Prime Minister II Datuk Seri Fadillah Yusof said the enhanced Memorandum of Understanding (MoU) will centre on achieving full interoperability, including harmonisation of technical standards, regulations, and power trading models across member countries.

“We already have a successful example through the collaboration between Laos, Thailand, Malaysia, and Singapore,” he told reporters at the 11th ASEAN-European Union Business Summit today.

“Cross-border energy trading is already taking place. That is a good reference point. If we can expand this across all member states and secure agreement, we will have a viable business model.”

Fadillah, who also serves as Minister of Energy Transition and Water Transformation, underscored the importance of ASEAN-EU collaboration, citing Europe’s advanced cross-border energy exchange mechanisms.

“This collaboration is crucial, so we can learn from the EU — what they’ve done, the challenges they’ve faced, and how they’ve overcome them,” he said.

“That way, we can take a more efficient route by working together with the EU.”

He also expressed hope that ASEAN would organise a dedicated technical workshop with the EU to explore ways to further strengthen the APG, particularly in areas of technical design, financing structures, and governance of cross-border electricity trade. - September 25, 2025

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