About this report
The Association of Southeast Asian Nations (ASEAN) has a long history of electricity system connectivity, and the development of the ASEAN Power Grid (APG) is central to achieving a sustainable, secure and affordable energy transition across the region. Delivering the APG will require a significant step‑change in investment over the coming 15 years, and unlocking financing from a diverse range of sources will be essential for this to happen. Yet financing approaches and business models have not evolved at the pace required to support an increasingly ambitious and complex pipeline of interconnector projects.
This report examines how interconnectors are approached today from the financing and business model perspective. It explores how, in combination with broad macro‑financial and market‑specific factors, current approaches may create challenges given the size and characteristics of the APG project pipeline. Rather than focussing on institutions or regulatory frameworks, this report approaches the issue through an investor’s lens – asking how these assets are financed in practice and what must change to make them bankable for a wide set of potential investors.
By quantifying total investment needs and potential sources of finance, identifying key barriers and offering clear, actionable recommendations, this report aims to equip policy makers, regulators, utilities, financiers and private‑sector stakeholders with the guidance needed to accelerate the financing and implementation of the ASEAN Power Grid.