Common power grid advances under 2026 chairmanship

All ASEAN member states have completed the signing of the Enhanced Memorandum of Understanding (MoU) 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 and 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 the 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.

In her keynote address at the ASEAN Summit on Sunday, Garin also said the government was seeking investment partners to expand the country’s first state-owned strategic petroleum reserve, including a possible additional facility in Mindanao that could accommodate refinery operations.

“We are looking for investors to expand the project, whether it be the island itself or an additional one located somewhere in Mindanao,” Garin said.

The investment push aims to strengthen fuel security, expand domestic energy infrastructure and protect businesses and consumers from global oil supply disruptions.

Garin said the Philippines remains highly vulnerable to international oil price volatility, as it imports 98 percent of its petroleum requirements.

“The Philippines faces two pressing challenges. First, we import 98 percent of our oil,” she said.

She warned that disruptions in global energy markets could quickly raise household expenses, factory operating costs and government spending, underscoring the need for domestic fuel reserves.

The government is developing its first strategic petroleum reserve while exploring private sector participation in additional storage infrastructure and potential refinery projects.

Apart from oil storage, Garin said the government was preparing to award contracts for nearly two gigawatts of new greenfield natural gas-fired power capacity by December, with the projects expected to be completed within five years.