\n<\/p>\n
Experts say Southeast Asia\u2019s energy transition will depend not only on deploying more renewable energy, but also on building the transmission networks and cross-border interconnectors needed to move electricity across the region.<\/p>\n
Tan Sue-Ern, head of the International Energy Agency\u2019s (IEA) Regional Cooperation Centre, said Southeast Asia has enormous untapped renewable energy potential \u2013 but much of it is located far from major demand centres.<\/p>\n
\u201cInterlocking and interconnecting the power systems so that you can bring low-cost supply together with the demand centers is critical,\u201d she said.<\/p>\n
The IEA estimates Southeast Asia has around 20 terawatts of untapped solar and wind potential \u2013 equivalent to roughly 55 times the region\u2019s current total power capacity.\u00a0<\/p>\n
But Tan said grids are increasingly becoming the global bottleneck for energy transition efforts.<\/p>\n
Cross-border electricity trade in Southeast Asia is complicated by differences in technical standards, regulations and market structures across national power systems, experts note.<\/p>\n
According to an IEA report released in March, only around US$2 billion has been invested in ASEAN cross-border interconnections over the past five decades.<\/p>\n
The agency estimates Southeast Asia will need about US$27 billion by 2040 to build the links needed to connect electricity grids across the region.<\/p>\n<\/div>\n