BUSINESS
ASEAN completes landmark power grid agreement under PH chairship
All ASEAN member states have completed the signing of the Enhanced Memorandum of Understanding on the ASEAN Power Grid (APG), marking a major milestone in regional energy cooperation under the Philippines’ 2026 chairship.
The agreement strengthens the framework for connecting national electricity networks and expanding cross-border power trading, while opening opportunities for regional energy investments.
It covers cooperation in infrastructure planning, regulatory development, institutional arrangements and financing for power interconnections, including overland transmission lines and subsea cables. Electricity market integration will follow a voluntary, gradual approach that respects each member state’s national policies and regulations.
ASEAN Secretary-General Kao Kim Hourn said the agreement reflects the bloc’s shared commitment to building a more connected energy future.
“The completion of signing reflects ASEAN’s shared commitment and mutual trust in building a more connected energy future. As we advance towards ASEAN Community Vision 2045, we welcome our partners and investors to translate this commitment into projects that deliver reliable, affordable and sustainable electricity for our peoples,” he said.
Energy Secretary Sharon Garin said the Philippines would continue working with fellow member states to advance regional electricity trade and attract investments.
“The Enhanced MoU brings our commitment to partnership, innovation and resilience into practical focus. As ASEAN Chair in 2026, the Philippines looks forward to working with fellow Member States and partners to advance cross-border electricity trade, attract investment and deliver a stronger ASEAN Power Grid for our communities and economies,” Garin said.
The initiative is expected to help diversify electricity supplies, improve power system resilience and support renewable energy integration, contributing to more reliable and affordable power across the region.