Why regional cooperation, not competition, will power ASEAN’s clean energy future

Electricity demand across the Association of Southeast Asian Nations (ASEAN) is projected to double by 2050, according to the International Energy Agency, fuelled by rapid industrialization, digital expansion and fast-growing cities. But nearly 80% of the region’s energy still comes from fossil fuels, leaving economies exposed to volatile prices, supply disruptions and rising emissions.

Like many parts of the Global South, ASEAN must now work out how to meet this soaring demand while keeping energy affordable, reliable and aligned with net-zero ambitions. The answer lies in cooperation, not competition.

In an era of geopolitical uncertainty and fragmented institutions, ASEAN offers a counter-narrative: that regional cooperation still works. Collective action may take longer to align, but it delivers more scalable, resilient and impactful outcomes than isolated national strategies.

And as renewables scale, data-driven industries expand and transport electrifies, ASEAN energy systems are becoming far more interconnected and complex – making the case for a shared regional approach even stronger.

Meeting ASEAN’s rapidly growing energy demand while keeping power secure, affordable and sustainable requires deep regional cooperation and a more integrated power system. No single country can meet these needs alone – coordinated planning, shared investment and cross-border interconnection will be essential.

ASEAN is advancing its energy integration agenda under the ASEAN Plan of Action for Energy Cooperation, with two flagship regional initiatives that exemplify this collaborative spirit.

First, the ASEAN Power Grid (APG) links national power networks, enabling countries to trade electricity and integrate more renewable energy across borders. As demand grows, especially from data centres and energy-intensive industries, shared grids improve reliability and reduce the need for each country to build redundant infrastructure.

Second, the Civilian Nuclear Energy framework is exploring the role of nuclear power as a stable, low-carbon complement to intermittent renewables. Nuclear energy is gaining interest interest in ASEAN as a long-term solution for energy security, affordability and deep decarbonization. For countries that choose to explore it, regional dialogue helps ensure approaches are safe, coordinated, and aligned with global standards.

Together, these initiatives show how collective action and regional trust can make energy systems more secure, efficient and sustainable, reducing the risks and costs borne by individual nations.

Collaboration is already happening in concrete, replicable ways across ASEAN.

The Lao PDR–Thailand–Malaysia–Singapore Power Integration Project, for example, has marked a milestone in ASEAN’s decades-long vision for the APG. Malaysia and Lao PDR are currently piloting cross-border power-sharing projects that lower system costs and improve reliability.

Strengthening transmission networks, advancing cross-border interconnections and improving policy frameworks is essential to system reliability and the large-scale integration of renewable energy across the region. Innovation and accessible financing will also play an important role by expanding clean electrification to keep pace with rising electricity demand – a priority for many ASEAN economies and an area examined in the World Economic Forum’s Future of Power Systems initiative.

Nuclear exploration is another long-term pathways under consideration as part of a broader regional effort to diversify ASEAN’s energy mix, strengthen system resilience and meet rising electricity demand through collaborative solutions.

In May 2025, the Energy Transition Meeting in ASEAN, titled "Fostering Regional Cooperation", highlighted the region’s interest in exploring a wider suite of clean-energy options, including advanced nuclear technologies. Indonesia and the Philippines are already exploring SMRs as part of their long-term diversification strategies – and they are sharing what they are learning. The Philippines’ December 2024 Integrated Nuclear Infrastructure Review mission and release of its Nuclear Energy Roadmap show how shared learning and institutional preparation can help countries to approach nuclear with rigour, transparency and long-term commitment.

The June 2025 International Atomic Energy Agency (IAEA)–World Bank Group Memorandum of Understanding is now opening up new avenues for countries to build capacity in nuclear safety, security, safeguards, fuel cycles, energy planning and waste management. It also highlights opportunities for developing economies to safely extend the lifespan of existing reactors – one of the most cost-effective sources of low-carbon power – and to advance emerging small modular reactor (SMR) technologies, which offer flexible deployment and lower upfront costs.

The World Bank’s announcement, at the same time, that it would lift its long-standing ban on financing nuclear energy broadens the global financing landscape for countries that are considering nuclear as part of their future energy mix. The IAEA also provides capacity-building support for regulatory authorities.

Beyond long-term technology pathways, ASEAN is also deepening cooperation on infrastructure and financing. Countries are exploring subsea transmission systems that enhance both power exchange and digital connectivity, building momentum toward ASEAN’s long-term goal of a fully integrated power system by 2045. The push for a Submarine Power Cable Framework and the ASEAN Power Grid Financing Facility show how regional planning can align capital, technology and policy to accelerate interconnection projects.

At the 2025 Powering the Intelligent Age Summit in Kuala Lumpur, the Malaysia Centre for the Fourth Industrial Revolution (Malaysia Centre4IR), which is hosted by MyDIGITAL Corporation, and the World Economic Forum convened policy-makers, utilities, financiers and technology leaders. A key takeaway from their discussions was that, while technology is critical, effective regional energy integration ultimately depends on trust, shared standards and consistent governance frameworks.

Regional collaboration is already delivering tangible outcomes in ASEAN, demonstrating that trust, steady engagement and consistent governance remain the most effective tools for solving cross-border challenges. To adapt to shifting geopolitical realities, the Global South is forging its own pathways to the energy transition through cooperation, pragmatism and regional leadership.

ASEAN’s clean-energy collaboration illustrates how developing regions can build cleaner, smarter and more resilient energy systems without sacrificing growth. Building on the momentum of Malaysia’s 2025 chairmanship, this will continue as the Philippines assumes the ASEAN Chairmanship in 2026, followed by Singapore in 2027. All of these nations will play a role in creating a more interconnected and sustainable regional energy future.

In a world where fragmentation often dominates the headlines, the ASEAN region is showing that shared challenges demand shared solutions.