ASEAN’s multibillion-dollar plan to link member countries’ power grids by 2045 continues to face significant funding challenges, according to research firm BMI.
Financing is considered the “primary bottleneck,” as cross-border submarine cables require capital-intensive investments with complex sovereign risks and uncertain revenue streams.
Emerging ASEAN markets with limited fiscal space and weaker utilities are likely to encounter major funding gaps for interconnector infrastructure, despite growing regional momentum.
The Asian Development Bank has pledged up to $10 billion for the ASEAN Power Grid (APG), but this falls far short of the estimated $100 billion needed for transmission infrastructure alone, with total power investments projected at $800 billion.
While a framework for cross-border subsea interconnectors is expected to be finalized this year under the Philippines’ ASEAN chairship, execution remains slow due to commercial, financial, and logistical complexities.
Source: PhilNews24 | March 8, 2026
