Southeast Asia targets energy connectivity to meet rising demand

Southeast Asia is facing a significant surge in energy demand, which the ASEAN Centre for Energy estimates could more than double by 2050. The International Energy Agency projects that the region’s demand will eventually exceed that of the European Union. To address this, regional leaders are focusing on energy connectivity, specifically through the ASEAN Power Grid (APG), to link national power systems and facilitate the distribution of renewable energy across borders.

Vietnam is a key player in this regional transition. Under its revised Power Development Plan VIII (PDP8), the country has expanded its ambitions for renewable energy, battery storage, grid infrastructure, and nuclear power. This framework anticipates approximately USD 134.7 billion in investment through 2030, with potential requirements exceeding USD 500 billion through 2050. The expansion is driven by rapid industrialization, rising electricity demand, and the decarbonization needs of multinational corporations operating within the country.