Connecting power grids to support the energy transition in Southeast Asia

In Southeast Asia, demand for electricity is rising rapidly as countries across the region expand renewable energy. To address these challenges, 10 member states of the Association of Southeast Asian Nations (ASEAN) are working together on the ASEAN Power Grid (APG). The project aims to connect their electricity networks progressively, creating an integrated regional system by 2045. By allowing countries to share more of their generating capacity, these connections could make electricity supplies more efficient and reliable while helping integrate renewable energy.

Preparing tomorrow’s infrastructure

AFD supports the initiative through the ASEAN Centre for Energy (ACE) and the Southeast Asia Energy Transition Partnership (SEA ETP).

“This support includes establishing a training program for energy regulators to strengthen their skills across the region, funding a feasibility study for a cross-border connection, and placing an international technical expert within ACE,” explains Arthur Honoré, a project team leader in AFD’s Energy Division.

Connecting multiple electricity systems also means aligning regulatory frameworks, sharing technical expertise, and preparing projects capable of attracting substantial investment. Future undersea connections are among the program’s main challenges.

Drawing on its experience on other continents, AFD is combining financing, technical expertise, and policy dialogue to support the development of new regional infrastructure.

Bringing French expertise to the table

During an ASEAN delegation’s study visit to France focused on electricity interconnections and undersea cables, AFD and Expertise France organized the France–ASEAN Power Grid Dialogue in Paris on 21 September. The event brought together representatives of ASEAN countries, public institutions, financiers, and French energy companies.

The aim was to explore how French public, financial, and industrial stakeholders could respond to the financing and technical needs identified by ASEAN countries.

Participants included RTE, Nexans, Vinci Energies, GE Vernova, EDF, TotalEnergies, and BNP Paribas. Their involvement drew on Europe’s extensive experience: since the first interconnection was built in 1958 where the borders of France, Germany, and Switzerland meet, more than 400 have been developed across the continent. In 2024, the 37 interconnections at France’s borders provided around 20 GW of electricity exchange capacity, equivalent to 20% of the country’s installed generation capacity. France’s net electricity exports in 2025 were equivalent to the electricity demand of a country such as Belgium.

Infrastructure built on shared interests

Beyond the exchange of expertise, the ASEAN Power Grid offers opportunities for long-term partnerships. For countries in the region, it could help make electricity systems more resilient, better connected, and more capable of integrating renewable energy.

For France and Europe, the project also offers an opportunity to deepen cooperation in the Indo-Pacific, mobilize public and private financing, and contribute expertise in engineering, finance, and grid technologies.

By bringing together its partners’ needs, financing, and French and European expertise, AFD is helping develop strategic infrastructure grounded in shared interests.