Clear project purpose, investment readiness vital in viable regional connections

KUALA LUMPUR: Clear project objectives, investment readiness and commercial viability will be critical to translating Asean's renewable energy potential into viable cross-border electricity connections, says Tenaga Nasional Bhd (TNB).

Its chief grid officer, Datuk Ir. Hasmarizal Hassan, said regional interconnection projects must be supported by comprehensive feasibility studies, appropriate technology, committed electricity buyers and clearly defined investment decision points to ensure their long-term sustainability.

He said risks associated with such projects must be addressed progressively before final investment decisions, with competitive electricity costs remaining a key consideration in determining their commercial viability and ability to secure financing.

Hasmarizal highlighted these requirements during a panel discussion titled "Beyond the Cable: What Will It Take to Build a Sustainable Asean Power Market?" at the Singapore International Energy Week (SIEW) 2026.

Malaysia's aspirations under the National Energy Transition Roadmap (NETR), coupled with rising electricity demand, particularly from data centres, are increasing the need for greater renewable energy integration and regional connectivity.

Building on existing interconnections with Thailand and Singapore, TNB is advancing initiatives involving other Asean member states, including Singapore, Vietnam and Indonesia, to strengthen regional energy security and facilitate renewable electricity trade.

The initiatives are aligned with the broader Asean Power Grid (APG), a regional undertaking aimed at connecting the electricity networks of member states to enable greater cross-border power trading and enhance the reliability, affordability and sustainability of electricity supply.

Asean is targeting a fully integrated power grid by 2045, and the initiative is expected to require substantial investments in transmission infrastructure, domestic grid upgrades, and subsea electricity cables.

He said that through a disciplined approach to project development and investment planning, TNB continues to support the development of a sustainable APG, while creating opportunities for greater renewable energy utilisation and regional energy cooperation.

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