Regulatory obstacles remain a significant challenge in advancing the ASEAN Power Grid, a regional initiative designed to enable cross-border electricity trading among member states by 2045, according to Jeffrey Siow, Singapore’s Second Minister for Finance and Transport Minister. The project aims to help countries import surplus clean energy as part of broader efforts to achieve net-zero emissions.
Speaking during a dialogue at the At One Impact Week 2026 forum in Singapore, Siow highlighted the absence of a unified legal framework governing cross-border electricity trade within ASEAN. “Domestic regulations differ in every country. We have to put together the regulations, and it’s a patchwork at the moment,” he said. Additional regulatory issues include the duration and renewal of export licenses and unclear protocols for the inspection, maintenance, and repair of submarine power cables, which are vital infrastructure for regional energy connectivity.
Siow emphasized that facilitating electricity exchange involves complex regulatory and operational measures beyond simply connecting grids. “It is not just a matter of literally flicking the switch,” he noted, referencing the numerous technical and legal hurdles that must be addressed to enable a seamless flow of electricity.
The challenges have come into sharper focus amid stalled projects such as the planned export of solar energy from Batam, Indonesia, to Singapore. Indonesia requires export licenses to be renewed every five years, introducing uncertainty for investors, who typically seek bankable infrastructure projects with a lifespan of two decades or more. Meanwhile, the Laos-Thailand-Malaysia-Singapore electricity trade agreement, initiated as a pilot for the regional grid in 2022, has faced difficulties over transit arrangements and power purchase quantities, according to reports in mid-2024.
In late 2025, ASEAN energy ministers approved a regional framework to support the development of submarine power cables, including subsea surveys and maintenance protocols, representing a step forward in addressing some technical challenges.
Despite these setbacks, Siow expressed cautious optimism about continued progress, pointing to the importance of sustained governmental collaboration across the region. “We may not be able to get all the way to where we want, but we’ll try our best to achieve all this,” he said.
Siow also reaffirmed Singapore’s commitment to achieving net-zero emissions by 2050 and advancing the decarbonization of the shipping sector. He acknowledged global momentum on climate action has waned somewhat but noted signs that greenhouse gas emissions are plateauing.
On maritime emissions, Siow criticized the delay in the International Maritime Organisation’s proposed net-zero framework, which would have implemented a carbon pricing mechanism and fuel standards. The framework’s one-year postponement in 2025 followed opposition from the United States and several oil-exporting countries. He said ongoing talks ahead of a renewed decision this October are constructive, though he recognized consensus remains challenging, given the divergent interests of key member states.
“We just have to accept that and try to do our best,” Siow said, underscoring the complexity of international climate negotiations amid geopolitical tensions.