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Cross-Border Electricity Trade: The Next Frontier in ASEAN’s Low-Carbon Future

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In our first blog on the Singapore–Indonesia renewable energy corridor, we explored how cross-border links are reshaping Southeast Asia’s low-carbon future. But that corridor is just one piece of a much larger puzzle. Across ASEAN, countries are moving towards Cross-Border Electricity Trade (CBET), a critical step in turning the long-envisioned ASEAN Power Grid into reality.  

CBET allows nations with abundant renewable energy sources to supply energy to markets with high demand. For example, hydropower from Laos, solar power from Indonesia, or wind power from Vietnam can flow across borders to meet the needs of fast-growing economies like Singapore and Malaysia.  These shifts illustrate how CBET can enable governments to meet climate commitments while also creating new opportunities for developers and investors to scale renewable projects across borders. 

Cross-Border Electricity Trade (CBET): The Next Frontier of ASEAN Energy Integration 

For years, the ASEAN Power Grid has been discussed as a regional ambition. Today, Cross-Border Electricity Trade (CBET) is transforming that vision into action. By linking national grids, CBET makes it possible to: 

  • Expand the use of renewable energy sources across borders 
  • Reduce reliance on fossil fuels and cut carbon emissions 
  • Strengthen regional energy security 
  • Minimise wastage of renewable power by balancing supply and demand 

Pilot projects, such as the Lao PDR–Thailand–Malaysia–Singapore (LTMS-PIP) arrangement, have already demonstrated the potential of CBET and tested the partnerships needed for larger flows of clean energy. Meanwhile, Singapore has set targets to import around one-third of its future electricity demand from regional sources by 2035, underlining how CBET is moving from concept to implementation. 

Getting Projects Investment-Ready

For cross-border energy projects, the real test of success is whether a project can move from vision to reality. While governments pave the way, developers and investors need to know a project is technically sound, environmentally responsible, and socially accepted. This is the difference between an idea and a bankable asset. 

At ESC, we make that transition possible. We specialise in navigating the complex, on-the-ground challenges that can make or break a project. Our teams guide clients through the entire process, from planning and feasibility studies to securing regulatory approvals and engaging with local communities. We don’t just manage risk; we help clients build projects that are credible and resilient. 

 Our work in the region speaks for itself: 

  • We helped an investment firm in Indonesia plan a 90-km subsea power cable corridor, conducting environmental studies to protect marine ecosystems and engaging with local communities to ensure social acceptance. 
  • We supported Singapore’s national grid operator with feasibility and environmental studies for a 174-km cable route, guiding the selection of pathways that were both practical and environmentally conscious. 

These cases show how early, expert preparation is the key to creating sustainable and bankable cross-border projects. 

Unlocking ASEAN’s Energy Future

As ASEAN advances electricity trade and moves toward a fully integrated power grid, success will be measured by the projects that are safe, trusted, and ready for investment. For governments, utilities, and financial partners, the challenge is navigating this complex regional landscape without derailing progress. 

ESC provides the essential expertise to de-risk these pioneering projects. We help clients build confidence among all stakeholders, ensuring that the next generation of regional energy infrastructure is both viable and trusted. If you are developing or financing the future of ASEAN’s energy, partner with ESC today. 

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