Jakarta: The Association of Southeast Asian Nations (ASEAN) must accelerate the development of smart grid systems and digitalisation to enhance regional energy cooperation and position the bloc as a global green energy powerhouse, according to Malaysian Deputy Prime Minister Datuk Seri Fadillah Yusof.
According to Lao News Agency, Fadillah addressed a panel session at the ASEAN Climate Forum in Jakarta, emphasizing that increased digitalisation would aid in cross-border electricity interconnections among member states and improve coordination in managing regional power systems. He noted that deploying smart grids would demonstrate ASEAN's collective commitment to climate mitigation and green initiatives, highlighting the bloc's potential to become a significant global energy provider, or 'battery'.
Fadillah, who also serves as Malaysia's Minister of Energy Transition and Water Transformation, stated that ASEAN holds substantial potential to become a key figure in the green economy. However, he stressed that this potential could only be realised through close cooperation among member countries. He expressed Malaysia's readiness to support the Philippines, the ASEAN Chair in 2026, in promoting green agendas, particularly the ASEAN Power Grid initiative.
The ASEAN Power Grid initiative has already garnered investment commitments worth $2 billion from the World Bank and the Asian Development Bank. Fadillah emphasized that blended finance mechanisms and investment mobilisation are crucial for ASEAN to achieve its regional grid connectivity goals. He mentioned that Malaysia is undertaking several projects to enhance cross-border power links, including the Borneo Grid initiative, which aims to connect the Malaysian states of Sarawak and Sabah with Indonesia's Kalimantan, Brunei, and Peninsular Malaysia via subsea cables.
Furthermore, Fadillah highlighted that the development of smart grid systems is not only essential for improving regional connectivity but also plays a vital role in ensuring ASEAN's energy security and gradually solidifying its central role in the global clean energy transition.