ASEAN Power Grid Gains Momentum with Indonesia‑Singapore Renewable Pact

Analysts at the ASEAN+3 Macro‑Economic Research Office (AMRO) warned that the region’s heavy reliance on oil shipments through the Strait of Hormuz leaves Asian economies vulnerable to geopolitical shocks and volatile energy markets. They urged ASEAN+3 nations to improve energy efficiency, diversify supply, bolster reserves and accelerate investment in renewable generation and transmission networks, especially as demand for electricity surges from air‑conditioning, data‑centres and artificial‑intelligence applications.

At a investors’ summit in Bali, representatives of sovereign‑wealth funds and institutional capital highlighted growing enthusiasm for the long‑delayed ASEAN power‑grid project. Only eight of the 18 planned interconnections are operating, providing about 7.5 GW of capacity. Stefanus Hadiwidjaja of Indonesia’s Danantara sovereign‑wealth fund said the proposed Singapore‑Indonesia cross‑border pact, which would export roughly 3.4 GW of low‑carbon electricity to Singapore by 2035, “is a good start to show the commitment and also the urgency to do this immediately.” The deal is seen as a key step toward a fully integrated regional grid.