ASEAN’s low-carbon future flows through smart grids

The report argues that smart grids are essential for ASEAN to integrate rapidly growing solar and wind capacity while supporting industrial growth. It estimates that an investment of $4 billion to $10.7 billion is needed to modernize power systems, which could potentially unlock $2.3 billion in annual economic value by 2040 and create between 243,000 and 649,000 jobs. The document highlights the need for regional cooperation to harmonize grid codes and mobilize green finance to overcome current fragmented standards and financing gaps.

• ASEAN's power reliability improved significantly between 2015 and 2020, with the average outage duration (SAIDI) decreasing by nearly 60% 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 modernize grids could result in nearly $2.3 billion in annual outage-related economic losses for ASEAN by 2040 due to diminished competitiveness and missed industrial output.
• ASEAN's solar and wind capacity are 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.
• Depending on the chosen pathway, ASEAN requires an upfront smart grid investment of $4 billion for a distribution-focused approach, $6.7 billion to enable rapid renewable growth, or $10.7 billion to support regional integration.
• Investment in smart grid infrastructure is estimated to create between 243,000 and 649,000 jobs across the region in sectors including engineering, IT, and construction.
• To scale smart grid adoption, the report recommends three strategic policy levers: harmonizing regional standards and grid codes, establishing clear financing frameworks for cost recovery, and scaling proven pilot models through knowledge sharing.

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} }