The ASEAN Power Grid (APG) is entering a more defining stage. Early cross-border electricity trade under the Laos–Thailand–Malaysia–Singapore Power Integration Project (LTMS-PIP) is beginning to show how power can move across national boundaries in a coordinated way, offering a clearer picture of what a connected regional grid could deliver. 

With COP31 on the horizon, attention is shifting towards how this progress can be extended across the region. At COP30, discussions at the ASEAN Pavilion brought together utilities and policymakers to examine what sustained regional integration will require in practice. Grid readiness, aligned market structures and investment pathways emerged as central to ensuring that power can flow reliably across different systems. 

In a conversation between Tenaga Nasional Berhad (TNB) and Perusahaan Listrik Negara (PLN), both parties underscored the importance of stronger regional coordination as this next phase takes shape. Existing arrangements have opened the door, but scaling will depend on frameworks that can support consistent, multi-country exchange and provide the confidence needed for long-term participation. 

LTMS-PIP proves that ASEAN power trading can work  

At COP30, the LTMS-PIP emerged as ASEAN’s most important proof point that crossborder power trading is both feasible and impactful. What began as a 100MW bilateral electricity trade between Laos, Thailand and Malaysia has since evolved into the region’s first multilateral trading arrangement, with Singapore’s participation as a buyer under LTMS-PIP.  

The latest agreement completes the full implementation of Phase 2 of the LTMS-PIP, paving the way for an additional 100MW of electricity exports from Laos to Singapore. This demonstrates that regional cooperation can grow through incremental progress, operational trust and stronger technical alignment between neighbouring countries.  

Previously, Malaysia has also supported the export of electricity to Singapore through mechanisms such as the Cross-Border Electricity Sales for Renewable Energy (CBES-RE) framework. The initiative uses existing grid infrastructure to transmit 50MW of green electricity to Singapore via the Energy Exchange Malaysia (ENEGEM) platform.   

This presents a key lesson for ASEAN: start small, build confidence, and progressively scale once governance, interoperability and commercials are proven.

According to Datuk Megat, the former President and CEO of TNB, these early pilots enabled countries to test wheeling arrangements, settlement mechanisms, and technical standards in a controlled environment. This presents a key lesson for ASEAN: start small, build confidence, and progressively scale once governance, interoperability and commercials are proven.  

Malaysia’s ENEGEM platform was highlighted during COP30 as an example of how centralised trading and settlement systems can improve transparency, efficiency and trust. Over time, such systems could form the foundations for a future ASEAN Power Exchange, helping standardise how renewable electricity is tracked, priced and traded across borders.  

Building a future-ready grid for ASEAN integration 

During the COP30 discussions, both Datuk Megat and Daniel Kamel, PLN’s EVP for Various New & Renewable Energy, also reiterated how there can be no energy transition without a robust transmission network and smart grid infrastructure. Both are essential to ensure efficient energy dispatch while maintaining system reliability and energy security.  

As ASEAN increases the share of renewables in its energy mix to 45% by 2030, future power systems must be flexible enough to support distributed solar, hydropower and other variable RE sources. Electricity grids will therefore need to evolve from a sequential power system approach into more intelligent, flexible and bidirectional systems.  

Beyond two-way electricity flows, the future grid must also enable two-way data flows, allowing grid operators, distributed generators and consumers to exchange real-time information. Digitalisation, automation, and artificial intelligence (AI) will become increasingly important to support predictive maintenance, dynamic load forecasting and faster system response.  

Technologies such as Advanced Metering Infrastructure (AMI), Distribution Automation (DA), and Battery Energy Storage Systems (BESS) will be critical enablers of this transformation. Malaysia is already investing heavily in this shift through TNB’s Grid of the Future programme, which has installed over 4.5 million smart meters nationwide to date. 

In addition, TNB is also developing a 400MWh battery storage project in Terengganu to support grid flexibility and renewable integration once operational. These investments are not only strengthening Malaysia’s domestic energy system but laying the groundwork for a more connected ASEAN-wide electricity network. 

Why policy certainty and commercial clarity matter  

While ASEAN has made significant progress, LTMS-PIP 2.0 reflects the need for a more institutionalised framework for regional power sharing. A large-scale APG implementation will ultimately depend on whether the region can create a more stable and investor-friendly environment. Cross-border transmission projects are capital intensive, involve long development timelines and require coordination across multiple governments, utilities and regulators.

Stakeholders need clear signals that projects will be supported by predictable regulations, transparent tariffs and bankable offtake arrangements. To this end, Datuk Megat noted that one of the biggest priorities for ASEAN will be creating a more harmonised system of technical standards, grid codes and operating procedures across member states. 

Meanwhile, panellists also highlighted the importance of blended finance and public-private partnerships to reduce the perceived risks of large-scale transmission and interconnection projects. Institutions such as the Asian Development Bank (ADB) and sovereign wealth funds may therefore play a greater role in crowding in private capital. 

More broadly, ASEAN needs to present itself not as a collection of fragmented national markets, but as an integrated investment destination. Moving beyond ad-hoc bilateral agreements towards standardised Power Purchased Agreements (PPAs) and wheeling arrangements will help build confidence among both governments and investors. 

Leaders at COP30 also suggested that ASEAN could benefit from a dedicated coordination body to support interoperability, reduce negotiation friction and accelerate project development. Stronger leader-level commitment, regular progress tracking and a clearer roadmap for APG expansion will remain critical to maintain momentum. 

Towards a connected ASEAN energy future 

Progress under LTMS-PIP 2.0 and discussions at COP30 point to a region beginning to operationalise cross-border power trade. The direction is clear. What follows will depend on how quickly early coordination translates into sustained investment and deeper system integration across ASEAN. 

This will require a step change in how the grid is financed and built. Transmission networks, interconnectors and digital infrastructure must evolve to support rising demand and more complex regional power flows, while maintaining reliability across different systems. 

As COP31 approaches, attention will turn to delivery. Clearer regulatory alignment, bankable project structures and long-term offtake arrangements will be critical to unlock private capital and move projects forward. For ASEAN, the opportunity lies in presenting a coordinated investment case that reflects the region’s collective demand and long-term growth. 

This conversation will continue at the upcoming The Energy Transition Conference 2026 (ETCon26) on 3-5 June 2026, where policymakers, utilities and industry players will examine how regional commitments can move into implementation and support the next phase of cross-border integration.