Southeast Asian nations will need to secure roughly USD 27 billion in funding over the next 15 years to build a shared regional electricity network. This project, known as the ASEAN Power Grid, requires a dramatic shift in spending to construct the advanced power lines and deep-sea cables necessary for a modern energy system, according to the authors of the newly released report.
“A total of USD 27 billion of investment is needed from 2025 to 2040 in the Base case across the region,” the report states. It further explains that “annual interconnector investment would need to surpass USD 1 billion before 2030 and average more than USD 2 billion per year thereafter.”
Historically, the region has only spent about USD 2 billion on these types of international power connections over the last five decades. Achieving the new goal requires a massive surge in annual spending to pay for complex infrastructure, such as long-distance underwater cables that connect different countries. This investment is crucial because it allows nations to trade electricity more easily, making the transition to cleaner energy sources more stable and cost-effective for millions of people.
The report “Financing the ASEAN Power Grid” was published by the International Energy Agency in Paris in March 2026. Lead author James Bragg and a team of analysts provide a comprehensive framework for unlocking the capital required to build a more integrated and sustainable energy future for Southeast Asia.
