Towards a Decarbonised and Resilient Power Sector: ASEAN-UK Energy Partnership

Southeast Asia’s power systems are entering a decisive period. Electricity demand grew by more than 7% in 2024 and is projected to double by 2050 [1]. The region’s abundant renewable resources offer a unique opportunity to meet this growth with cleaner electricity, strengthen energy security, and build resilience.

But generating clean electricity is only part of the challenge. Power systems must deliver it when needed, balance demand and renewable output, manage congestion and remain resilient to disruption. Generation and grid development must move together.

The United Kingdom has faced similar questions. It closed its final coal-fired power station in 2024 after a rapid shift away from coal, while renewables supplied more than half of UK electricity generation in 2025 [2]. This required system-wide change.

As ASEAN and the UK enter the fifth year of their Dialogue Partnership and prepare for the next chapter of cooperation under the ASEAN-UK Plan of Action 2027-2031, both sides are strengthening cooperation through the exchange of expertise and technical collaboration to help develop the resilient power systems needed for Southeast Asia's energy transition.

UNLOCKING FLEXIBILITY ACROSS THE POWER SYSTEM

Flexibility has been central to the UK’s transition. As renewables expanded and coal declined, batteries, interconnectors, demand-side response and responsive system operation helped balance supply and demand. Smarter networks also draw on distributed resources to manage local constraints.

The UK’s interconnectors show what this can achieve. National Grid estimates that its portfolio delivered £1.65 billion in net benefits to British consumers since 2023 [3]. More than two-thirds of electricity imported through these links was zero-carbon. The links provide lower-cost electricity and strengthen energy security.

Across the region, ASEAN Member States are pursuing diverse pathways to enhance power system flexibility. Batteries, responsive generation and flexible demand can balance renewable output, while smart grids and improved forecasting can help networks accommodate more clean electricity. The priority is to identify the services each system needs and how best to deliver them.

Regional interconnection could be especially powerful. By linking different demand patterns, generation mixes and renewable resources, the ASEAN Power Grid can move electricity to where it is most valuable. Countries could also share reserves and other system services. Together with storage and flexible demand, this could strengthen security as reliance on coal declines.

TURNING EXPERIENCE INTO PRACTICAL ACTION

Infrastructure alone will not unlock this opportunity. Regulation, finance and trusted institutions are equally important, alongside cooperation among governments, regulators, utilities and industry.

UK experience offers practical lessons, not a blueprint. ASEAN Member States are pursuing energy transition that reflects their diverse resource and development priorities. This cooperation between UK and ASEAN create opportunities to explore approach that can be adapted to regional and national circumstances.

Through the ASEAN-UK Green Transition Fund (GTF), funded by the UK Mission to ASEAN, ASEAN and the UK are working together to accelerate practical solutions for a more resilient, interconnected, and future-ready power sector. Implemented by Green Grids Rising, an initiative under the GTF, the three Playbooks to be launched at Future of the Grid 2026 examine how repurposing coal assets can support the transition, how the ASEAN Power Grid can enable deeper cooperation, and how smart grids can unlock flexibility. They help decision-makers identify needs, evaluate options and move towards implementation.

Together, these solutions can help ASEAN use more renewable energy, reduce exposure to volatile fuel markets and prepare for changing demand and disruption. The prize is lower emissions and a more secure, resilient, and

 

[1] IEA. 22 September 2025. Southeast Asia can harness vast renewable resources to meet fast-growing electricity demand

[2] UK Government. 30 July 2026. Digest of UK Energy Statistics.

[3] National Grid. 20 January 2026. Interconnectors deliver billions in benefits to Brits