ASEAN Energy Transition: Grid Readiness, Renewable Growth, and Bankability Challenges

ASEAN faces a critical challenge in executing its energy transition. The region has strong renewable energy momentum with solar and wind capacity exceeding 45 GW in 2024, up from 4 GW in 2015. However, grid readiness lags behind. The IEA estimates ASEAN needs over US$300 billion for grid expansion between 2025 and 2040, including US$27 billion for cross-border interconnectors. Without modernized networks, renewable energy will go unused and energy security will suffer. Execution, not ambition, is the real bottleneck. Capital is available but projects must be bankable. Blended finance can help but only when paired with clear policy and risk allocation. For businesses, energy transition readiness is now a competitive issue. Companies that understand their energy exposure and signal demand for lower-carbon power will be better positioned as ASEAN's power system evolves.