Singapore and US Advance Regional Energy Connectivity Framework to Support ASEAN Power Grid Development

Southeast Asia — Singapore and the United States have announced the preliminary findings of the second phase of their joint feasibility study on regional energy connectivity, highlighting the need for stronger regulatory cooperation, coordinated governance and innovative financing mechanisms to accelerate cross-border electricity infrastructure development across Southeast Asia.

The findings were announced on October 28, 2026, through the sixth Singapore–United States Joint Statement on Energy Cooperation, jointly issued by Singapore's Ministry of Energy, Trade and Industry (METI), the Energy Market Authority (EMA) and the United States Department of Energy (DOE).

Launched in October 2024, the second phase of the study examines the legal, governance and financing arrangements required to facilitate greater regional energy interconnectivity and strengthen energy security across Southeast Asia. It builds on the first phase, which assessed regional electricity infrastructure, including subsea interconnections, as well as the potential socioeconomic benefits of cross-border energy connectivity.

Regulatory Alignment and Regional Cooperation

The preliminary findings highlight the importance of stronger regional governance and closer alignment of national legal and regulatory frameworks to support the development of subsea power interconnections.

As Southeast Asian countries operate under different regulatory systems and approval procedures, greater coordination will be necessary to facilitate project development and cross-border electricity trading. Clearer institutional responsibilities and more consistent regulatory arrangements could help reduce uncertainty for developers and investors.

The study also highlights the need to establish financing mechanisms capable of mobilising investment in large-scale subsea interconnection projects. Potential approaches include measures to mitigate project risks and regional cost-allocation mechanisms that distribute infrastructure costs among participating countries.

These arrangements are expected to support the bankability of cross-border transmission projects and encourage broader participation from public and private investors.

Supporting the ASEAN Power Grid

The findings are expected to provide practical recommendations for the development of the ASEAN Power Grid, a regional initiative designed to strengthen electricity connectivity and facilitate cross-border power trading among Southeast Asian countries.

The work will also contribute to regional initiatives such as the ASEAN Submarine Power Cable Development Framework and support the implementation of the ASEAN Plan of Action for Energy Cooperation (APAEC) 2026–2030.

The United States' National Laboratory of the Rockies and Pacific Northwest National Laboratory are involved in the study. Key findings from the second phase were presented during the 19th Singapore International Energy Week on October 28, 2026, with the final report expected to be completed by early 2027.

By addressing regulatory barriers and financing challenges alongside physical infrastructure development, the initiative could help create more favourable conditions for regional renewable energy integration, cross-border electricity trading and long-term investment in Southeast Asia's power sector.