[ASEAN Power Grid Transformation]①"Korea Urged to Join $800 Billion Power Network"

Secretary-General Kao of ASEAN: “We hope Korea will invest $800 billion in the ASEAN Power Grid over the long term”

“Energy demand expected to rise 2.6 times by 2045... Excludes power needed for large-scale data centers”

APG gains momentum amid AI and manufacturing expansion; cross-border infrastructure linking surplus and demand nations

SMRs emerging as an alternative in the energy mix; Vietnam, Singapore, and Indonesia show interest

A new market may open for Korean companies with strengths in submarine cables, electrical equipment, and nuclear technology

"We hope that Korea will invest in the ASEAN Power Grid (APG) project."

Kao Kim Hourn, Secretary-General of ASEAN, has requested Korea to participate in the extra-large energy infrastructure market estimated at 800 billion dollars. With soaring power demand in Southeast Asia due to the expansion of artificial intelligence (AI), data centers, and advanced manufacturing industries, securing next-generation power sources such as the cross-border ASEAN Power Grid and small modular reactors (SMR) has emerged as a key agenda for ASEAN. The Secretary-General expressed the viewpoint that Korea's role is essential in this context.

Kaeum Hooeun, Secretary-General of ASEAN, is interviewed by the Korean press delegation of the Korea-ASEAN Center's Korea-ASEAN Journalist Exchange Program at the ASEAN Secretariat on the 8th. Photo by Korea-ASEAN Center

On August 8, at the ASEAN Secretariat in Jakarta, Indonesia, Secretary-General Kao stated in an interview with the Korean press group, "According to research by the ASEAN Centre for Energy (ACE), ASEAN's energy demand is projected to increase by 2.6 times by 2045." He further clarified, "This figure does not include the power demand for large-scale data centers that will be required under the Digital Economy Framework Agreement (DEFA)." In other words, when the proliferation of AI data centers and advanced industries becomes full-scale, actual power demand could surpass current projections.

To respond to the rapidly increasing power demand, ASEAN is accelerating the establishment of the ASEAN Power Grid (APG), which will connect national power grids and enable the sharing of renewable energy across member states.

Secretary-General Kao emphasized, "The APG is a large-scale project to transfer surplus energy, especially renewable energy, across the region." He added, "This project will require an estimated long-term investment of about 800 billion dollars, and we hope that Korea will invest in this project."

The APG aims to connect power-supplied regions such as Laos and other Mekong countries with consumer nations like Singapore, Malaysia, and Indonesia, where demand is growing due to the expansion of data centers and manufacturing industries. The goal is to enhance regional energy security. The APG was also a key agenda item at last year's ASEAN Summit.

Cheol Lee, Ambassador to the ASEAN Mission, described the APG as "a highly ambitious project." He explained, "By interconnecting power grids, there are mutual benefits for all parties involved."

However, the realization of the APG project hinges on massive investment and financial procurement. Ambassador Lee pointed out that, so far, the lack of a clear solution for financing has kept the initiative at the conceptual stage. With increasing discussions on data centers and nuclear power, as well as the growing possibility of participation from international financial institutions, the business feasibility of the project is now considered to be improving.

The APG also represents a significant opportunity for Korean companies. The creation of a large-scale infrastructure market encompassing ultra-high voltage transmission, submarine cables, substations, power control systems, energy storage systems (ESS), and power trading platforms is expected. There is mention of the potential involvement of Korea Electric Power Corporation (KEPCO) with its operational know-how, as well as domestic power cable companies like LS Cable and Taihan Cable, and manufacturers of electrical equipment.

Another strategic focus ASEAN is considering alongside power grid interconnection is nuclear energy. Secretary-General Kao stated that some member states are considering adopting nuclear power to meet soaring energy demand, adding, "Small modular reactors (SMRs) could be a good alternative." He also noted, "After this year's energy crisis, the interest in introducing nuclear energy has become clearer than ever."

Kan Siu Huang, Singapore's Minister of State for Foreign Affairs, is meeting with the Korean press corps and giving an interview. Photo by Hana ASEAN Center

Singapore is at the center of discussions around both the APG and SMRs. Although power consumption is high, Singapore's status as a city-state with land constraints limits the expansion of domestic renewable energy. Kan Siu Huang, Singapore’s Minister of State for Foreign Affairs, met with the Korean press group and stressed that energy cooperation between Korea and ASEAN, going beyond bilateral Korea-Singapore cooperation, is important. He highlighted the need for collaboration on renewable energy, power grid development, and SMRs.

However, Singapore has not yet decided to introduce SMRs. Minister Kan explained, "The Singaporean government has not made any decisions as of now," emphasizing the need to consider safety, space, and technical suitability before any final determination.

This content was produced with the assistance of AI translation services.