EU Boosts ASEAN Power Grid Cooperation to Advance Green Energy Integration

In a landmark move to accelerate sustainable energy connectivity across Southeast Asia, the European Union (EU) has announced enhanced support for the ASEAN Power Grid (APG), reinforcing its commitment to clean energy transition, regional integration, and shared prosperity. The announcement was made during the Global Gateway Forum, held from October 9–10, 2025, in Brussels, signaling a deepening of cooperation between the EU, the Association of Southeast Asian Nations (ASEAN), and global partners.

A Joint Commitment for a Sustainable Future

At the heart of the EU’s new engagement is a Joint Declaration of Intent signed by the EU, European partners, and the Asian Development Bank (ADB). The declaration formalizes cooperation under the Team Europe approach, which unites the EU institutions, Member States, European financial institutions, and private investors to maximize collective impact.

The agreement aims to advance the ASEAN Power Grid project, a transformative regional initiative designed to interconnect national electricity networks across the 10 ASEAN Member States. Once operational, the APG is expected to provide reliable, affordable, and clean electricity to more than 670 million people, while fostering economic growth, regional stability, and low-carbon development.

The Vision of the ASEAN Power Grid

The ASEAN Power Grid—a project first conceived in the late 1990s—represents a cornerstone of ASEAN’s efforts to build a unified, sustainable energy market. By facilitating cross-border power trade and renewable energy integration, the project will help balance electricity supply and demand across countries, reduce dependence on fossil fuels, and boost investment in green technologies such as solar, wind, and hydropower.

ASEAN has already completed several interconnection projects, including those between Thailand–Laos, Malaysia–Singapore, and Vietnam–Cambodia, but large-scale grid integration remains a challenge. The EU’s strengthened engagement seeks to bridge this gap by supporting feasibility studies, regulatory harmonization, and investment mobilization.

EU Commissioner: “Clean Energy Means Better Lives”

Speaking at the Global Gateway Forum, European Commissioner for International Partnerships, Jozef Síkela, underscored the far-reaching benefits of sustainable energy cooperation.

“Reliable access to clean energy means better education, lower costs, stronger local businesses, and greater energy security,” he said. “The ASEAN Power Grid will make all this possible—fully in line with our Global Gateway Strategy—and that is why we are stepping up our support for this project.”

He added that Europe’s leadership in renewable energy and electricity market integration positions it well to share best practices and technical expertise with ASEAN partners. “Our experience in building a connected energy market in Europe can serve as a valuable model for ASEAN’s own integration efforts,” he noted.

Strengthening a 50-Year Strategic Partnership

This cooperation marks a major milestone in the EU-ASEAN strategic partnership, which will celebrate its 50th anniversary in 2027. The collaboration aligns closely with the EU Global Gateway Strategy, launched in 2021, which seeks to mobilize up to €300 billion globally by 2027 for sustainable infrastructure, digital transformation, and climate resilience.

The ASEAN Power Grid stands out as a flagship project under this initiative, symbolizing the EU’s commitment to supporting green transitions beyond Europe’s borders. Through this partnership, the EU hopes to enhance energy connectivity, regional resilience, and investment in renewable energy ecosystems throughout Southeast Asia.

Investment, Innovation, and Integration

The Joint Declaration brings together an impressive coalition of European development banks and financial institutions, including the European Investment Bank (EIB), Agence Française de Développement (AFD), KfW (Germany), Cassa Depositi e Prestiti (Italy), FMO (Netherlands), and the European Development Finance Institutions (EDFI). Together with the Asian Development Bank, these partners will coordinate financing for infrastructure investments, grid modernization, and renewable energy generation.

The declaration was witnessed by representatives from the ASEAN Secretariat, the ASEAN Centre for Energy, and ASEAN Member States, underscoring the project’s strong regional ownership.

A dedicated session at the Global Gateway Forum explored opportunities and challenges for developing the ASEAN Power Grid, with discussions focused on financing needs, policy frameworks, and technology transfer. ASEAN partners shared their plans to upgrade the existing ASEAN Power Grid Memorandum of Understanding into a Framework Agreement by 2025, which will serve as a more comprehensive legal basis for cooperation and investment.

Advancing a Just and Inclusive Energy Transition

Beyond technical collaboration, the EU and ASEAN also reaffirmed their shared commitment to a fair and inclusive energy transition. The EU’s engagement builds upon existing Just Energy Transition Partnerships (JETPs) that provide financial and technical assistance to ensure that no community is left behind in the shift toward renewable energy.

This includes capacity-building initiatives, workforce training, and support for women-led enterprises in the energy sector—reflecting the EU’s broader priorities of social inclusion, equality, and sustainable growth.

A Catalyst for Regional Stability and Prosperity

The ASEAN Power Grid is not only a climate and energy project—it is a strategic investment in regional integration and security. By enabling shared infrastructure and mutual energy dependence, the project strengthens economic interconnectivity and diplomatic cooperation among ASEAN Member States.

As Commissioner Síkela noted, “A united ASEAN energy network will not only power homes and industries but will also strengthen the bonds that connect our peoples.”

The EU’s renewed support for the ASEAN Power Grid represents a pivotal step toward a greener, more connected, and resilient Southeast Asia. As the region works to meet its ambitious Net Zero goals by 2050, this partnership embodies a shared commitment to turning sustainability into a driver of inclusive development and long-term prosperity.