ASEAN needs interconnected green energy for a sustainable future

Southeast Asia, specifically ASEAN, faces a significant challenge in meeting its energy demands as it transitions to renewable sources. The increasing reliance on data centers within the region implies a rising electricity demand, which can jeopardize climate goals and economic opportunities if not addressed through an energy transition. A comprehensive grid plan, incorporating six pillars—modernization, expansion, adoption of flexibility options, regional integration, market reforms, and the mobilization of finance—is critical for creating a strong energy framework. While national plans in ASEAN countries have begun to integrate these pillars, there remains an insufficient level of transparency and specificity regarding planned grid expansions. To address these challenges, ASEAN has the potential to leverage its renewable energy resources, particularly through the harnessing of solar and wind power along proposed grid routes. The optimization of such resources could amount to as much as thirty gigawatts. As countries like the Philippines target over four gigawatts of pumped hydro energy, the adoption of battery energy storage systems (BESS) illustrates a commitment to modernizing their energy grids. This modernization not only involves expanding capacity but also ensuring that the grid is smart and flexible enough to adapt to the variable nature of renewable energy generation. Regional integration will serve as a cornerstone for optimizing these resources across borders. Harmonization of grid codes and development of cross-border interconnectors will create a cohesive approach towards energy sharing, which will ultimately decrease overall energy costs while enhancing security. By promoting a robust and interconnected grid, ASEAN opens avenues for significant economic growth through efficient resource sharing and development of a resilient clean power system. Shabrina Nadhila's role at Ember emphasizes the importance of data-led advocacy for electricity policy that facilitates this transition away from fossil fuels and toward a clean energy future. The urgency for ASEAN to adopt these strategies is propelled by both internal and external pressures for sustainable development. Without decisive action towards building a comprehensive framework, and enhancing grid connectivity for renewable infrastructure, the region risks lagging in its climate ambitions and forfeiting the economic benefits associated with a clean energy market. The modernization efforts could serve not only as a response to imminent energy demands but also as a strategic move towards achieving long-term environmental and economic sustainability.