ASEAN’s low-carbon future flows through smart grids

This report by Ember argues that smart grids are essential for ASEAN to integrate increasing shares of renewable energy, maintain industrial competitiveness, and reduce economic losses from power outages. It estimates that investments between $4 billion and $10.7 billion are required to modernize the region's power systems, which could in turn create up to 649,000 jobs and unlock $2.3 billion in annual economic value by 2040.

• ASEAN's power reliability improved significantly between 2015 and 2020, with the average outage duration (SAIDI) decreasing from 13.0 to 5.2 hours and the outage frequency (SAIFI) dropping from 8.6 to 4.4 hours per user.
• The economic cost of power outages varies by country based on the Value of Lost Load (VOLL). Singapore has the highest VOLL at over $6/kWh, while Myanmar, the Philippines, and Indonesia exceed $3/kWh. Failure to address reliability gaps could result in nearly $2.3 billion in annual outage-related losses for ASEAN by 2040.
• ASEAN faces a massive increase in renewable capacity by 2050, with solar projected to grow from 27.7 GW in 2023 to 334.8 GW, and wind expanding from 7.4 GW to 228.4 GW. Smart grids are necessary to manage this variable generation and avoid curtailment and reliance on fossil fuel backups.
• The report identifies three investment pathways for smart grids based on international benchmarks: a low-level pathway ($4 billion) focused on distribution and reliability, a medium-level pathway ($6.7 billion) to enable rapid renewable growth, and a high-level pathway ($10.7 billion) to support regional integration and cross-border trade.
• Investment in smart grid infrastructure is estimated to create between 243,000 and 649,000 jobs across ASEAN, spanning sectors such as engineering, IT, construction, and operations.
• To scale smart grid adoption, the report recommends three strategic policy levers: harmonizing regional standards and grid codes, establishing clear financing frameworks (including green bonds and blended finance), and implementing knowledge sharing based on frontrunner models like Singapore and China.

APA

Demoral, A., & Setyawati, D. (2025). ASEAN’s low-carbon future flows through smart grids. Ember. https://ember-energy.org/app/uploads/2025/10/ASEANs-low-carbon-future-flows-through-smart-grids-PDF.pdf

Chicago

Demoral, Alnie, and Dinita Setyawati. ASEAN’s low-carbon future flows through smart grids. Ember, 2025. https://ember-energy.org/app/uploads/2025/10/ASEANs-low-carbon-future-flows-through-smart-grids-PDF.pdf.

Wikipedia

{{cite report |last1=Demoral |first1=Alnie |last2=Setyawati |first2=Dinita |title=ASEAN’s low-carbon future flows through smart grids |publisher=Ember |date=14 October 2025 |url=https://ember-energy.org/app/uploads/2025/10/ASEANs-low-carbon-future-flows-through-smart-grids-PDF.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{demoral2025aseans, author = {Demoral, Alnie and Setyawati, Dinita}, title = {{ASEAN’s low-carbon future flows through smart grids}}, institution = {Ember}, year = {2025}, month = oct, url = {https://ember-energy.org/app/uploads/2025/10/ASEANs-low-carbon-future-flows-through-smart-grids-PDF.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }