Reliable grids are key to sustaining ASEAN’s economic growth

This report by Ember examines the critical role of grid reliability and modernization in sustaining the economic growth of the ASEAN region. It argues that while the region has made progress in reducing outage durations, the rapid expansion of variable renewable energy (VRE) requires a transition from basic grid modernization to 'smart grids' incorporating digital intelligence and demand-side flexibility to avoid significant economic losses and energy curtailment.

• Improving grid reliability through transmission upgrades, cross-border interconnections, and digital solutions like demand response could prevent approximately $2.3 billion in annual GDP losses by 2040.
• ASEAN has seen significant improvements in grid reliability between 2015 and 2020, with the average outage duration (SAIDI) decreasing by nearly 60%, from 13 hours to just over 5 hours, and outage frequency (SAIFI) being reduced by half.
• The region's solar and wind capacity is projected to grow substantially by 2050, with solar increasing from 27.7 GW in 2023 to 334.8 GW and wind expanding from 7.4 GW to 228.4 GW. Battery capacity is expected to rise from 4.2 GW to nearly 94 GW.
• The economic impact of power outages varies across the region, measured by the Value of Lost Load (VOLL). The average VOLL in ASEAN is $2.4/kWh, but it exceeds $3/kWh in Myanmar, the Philippines, and Indonesia, and surpasses $6/kWh in Singapore.
• The ASEAN Power Grid (APG) aims for regional interconnection to enhance energy security and resilience; as of 2023, six countries are linked by 13 interconnections totaling 3,631 km, though the LTMS project remains the only operational multilateral arrangement.

APA

Ember (2025). Reliable grids are key to sustaining ASEAN’s economic growth. https://ember-energy.org/chapter/reliable-grids-are-key-to-sustaining-aseans-economic-growth/

Chicago

Ember. Reliable grids are key to sustaining ASEAN’s economic growth. 2025. https://ember-energy.org/chapter/reliable-grids-are-key-to-sustaining-aseans-economic-growth/.

Wikipedia

{{cite report |author=Ember |title=Reliable grids are key to sustaining ASEAN’s economic growth |date=14 October 2025 |url=https://ember-energy.org/chapter/reliable-grids-are-key-to-sustaining-aseans-economic-growth/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ember2025reliable, author = {{Ember}}, title = {{Reliable grids are key to sustaining ASEAN’s economic growth}}, institution = {Ember}, year = {2025}, month = oct, url = {https://ember-energy.org/chapter/reliable-grids-are-key-to-sustaining-aseans-economic-growth/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }