Currents beneath currents: Overcoming ASEAN's subsea power cable governance challenges

This report examines the governance challenges facing the development of cross-border subsea power cables in ASEAN. While technical feasibility is established, the report identifies gaps in regional planning, cost allocation, and maritime coordination. Drawing on Europe's experience with the Ten-Year Network Development Plan and Cross-Border Cost Allocation, it recommends a phased approach: first operationalising the ASEAN Power Grid Generation and Transmission Planning (AGTP) function, then piloting benefit-based cost allocation, and finally strengthening cross-sectoral maritime spatial planning.

• The development of cross-border subsea power cables in ASEAN is currently limited by institutional and governance challenges rather than engineering feasibility. While the ASEAN Interconnector Masterplan Study III identified a need for 18 new and existing interconnectors to more than double the region's capacity from 7.7 gigawatts by 2040, progress is hindered by the need for coordination across jurisdictions regarding regulatory frameworks, market rules, and permitting.
• Subsea interconnectors introduce a unique spatial governance layer because they occupy shared sea space, requiring coordination beyond the energy sector. This involves managing interactions with maritime authorities responsible for fisheries, shipping, environmental protection, and telecommunications. In contested areas, the lack of a single recognized authority can lead to permitting delays and suboptimal design.
• Europe's experience demonstrates that successful subsea interconnection evolves through a multi-level institutional framework. Key tools include the Ten-Year Network Development Plan (TYNDP) for long-term planning, the Projects of Common Interest (PCI) framework for accelerated permitting and funding, and the Agency for the Cooperation of Energy Regulators (ACER) for regulatory cooperation. As of 2025, Europe has approximately 25 operational submarine power interconnectors with a combined capacity of about 22,290 MW.
• ASEAN currently lacks a continuous regional planning mechanism, with project development often driven by national priorities or short-term commercial viability rather than system-wide needs. The report recommends operationalising the ASEAN Power Grid Generation and Transmission Planning (AGTP) function to establish a regional planning cycle, aggregate national plans, and identify priority interconnection corridors.
• Cost allocation in ASEAN typically relies on bilateral negotiations and usage-based mechanisms, which may be insufficient for complex multi-country subsea projects. The report suggests exploring Cross-Border Cost Allocation (CBCA) frameworks, similar to those in Europe, where investment costs are distributed based on project benefits rather than just asset location. A proposed phased approach includes pilot applications, such as the Singapore-Sumatra interconnection.
• To address maritime complexities, the report proposes deepening the role of the Submarine Cable Working Group under the AGTP function. This body would develop regional guidelines for cable routing, coordinate permitting across countries, and manage risks related to the maintenance and protection of subsea assets in coordination with non-energy stakeholders.

APA

Demoral, A., & Setyawati, D. (2026). Currents beneath currents: Overcoming ASEAN's subsea power cable governance challenges. Ember. https://ember-energy.org/app/uploads/2026/06/Currents-beneath-currents-Overcoming-ASEANs-subsea-power-cable-governance-challenges.pdf

Chicago

Demoral, Alnie, and Dinita Setyawati. Currents beneath currents: Overcoming ASEAN's subsea power cable governance challenges. Ember, 2026. https://ember-energy.org/app/uploads/2026/06/Currents-beneath-currents-Overcoming-ASEANs-subsea-power-cable-governance-challenges.pdf.

Wikipedia

{{cite report |last1=Demoral |first1=Alnie |last2=Setyawati |first2=Dinita |title=Currents beneath currents: Overcoming ASEAN's subsea power cable governance challenges |publisher=Ember |date=17 June 2026 |url=https://ember-energy.org/app/uploads/2026/06/Currents-beneath-currents-Overcoming-ASEANs-subsea-power-cable-governance-challenges.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{demoral2026currents, author = {Demoral, Alnie and Setyawati, Dinita}, title = {{Currents beneath currents: Overcoming ASEAN's subsea power cable governance challenges}}, institution = {Ember}, year = {2026}, month = jun, url = {https://ember-energy.org/app/uploads/2026/06/Currents-beneath-currents-Overcoming-ASEANs-subsea-power-cable-governance-challenges.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }