‘Not charity’: Asean Power Grid promises shared benefits, says DBS executive

The Asean Power Grid (APG) is not a charitable endeavor, according to DBS executive Han Kwee Juan. Instead, it aims to foster shared growth and resilience across Southeast Asia, driven by the region's growing demand for energy due to advancements in AI, data centers, and advanced manufacturing. Speaking at a forum organized by DBS and the Energy Market Authority (EMA), Han emphasized that the APG seeks to link Asean member states' power systems for energy trade by 2045.

Singapore plans to import approximately 6 gigawatts (GW) of low-carbon electricity from the region by 2035 to meet a third of its energy needs. The APG promises shared prosperity rather than dependence, as countries with abundant renewable resources can secure their energy future and potentially become exporters of clean energy.

To achieve this vision, the APG needs feasible, bankable, and scalable business models to mobilize capital, according to Han. DBS is providing a US$210 million senior financing facility for an investment vehicle under Singapore's Financing Asia's Transition Partnership (Fast-P) initiative and has contributed US$75 million to Fast-P's Green Investments Partnership fund.

Industry players, however, stressed that regulatory clarity is crucial before laying cross-border power cables. Gurin Energy's CEO Assaad Razzouk called for more rules and cables, while IFC's Vikram Kumar emphasized the need for standardized wheeling charges and underwriting curtailment risk to provide companies with better forecasts and modelling for power delivery costs.