Photo 1. Group Photo of Workshop Participants.
March 26, 2026. The ASEAN Centre for Energy (ACE), supported by the UK Foreign, Commonwealth, and Development Office (FCDO) through the ASEAN-UK Green Transition Fund (GTF), convened the first regional workshop in Jakarta as part of its ongoing study on innovative business models and financing mechanisms for power transmission projects. The event brought together representatives from ASEAN Member States (AMS), energy experts, development partners, and financial institutions to examine pathways for advancing the ASEAN Power Grid (APG). Discussions are centred on the study objectives which address investment barriers, enhance project bankability, de-risk infrastructure, and diversify financing structures.
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Photo 2. Opening remark by Nadhilah Shani, Manager of Power Generation and Interconnection (PIN) Department (top) and Scene Setting Presentation by Ignatius Primadi, Senior Research Analyst of PIN Department (bottom).
In her opening remarks, Nadhilah Shani, Manager of the Power Generation and Interconnection (PIN) Department at ACE, underscored the strategic importance of regional interconnection in strengthening energy security and system resilience across Southeast Asia. She emphasised that the workshop forms part of ACE’s broader efforts to accelerate the realisation of the APG. Setting up the discussion foundation, Ignatius Primadi presented key findings from the ASEAN Interconnection Masterplan Study (AIMS), highlighting that financing constraints remain among the most significant impediments to APG implementation. AIMS estimates that between US$15–30 billion is required to fully operationalise the regional grid, reinforcing the urgency of exploring alternative financing models. In response, ACE reaffirmed its commitment to supporting AMS in expanding cross-border power trade through innovative financial mechanisms.
Opening the first session, Wen Bin Lim of KPMG outlined the study’s scope and timeline before inviting Yaxin Zhu to present a diagnostic review of transmission financing landscapes across ASEAN. Her analysis revealed a continued reliance on sovereign and utility-led financing, a model that may constrain scalability if not complemented by diversified approaches. She outlined three alternative financing structures, public-private partnerships, generation-linked transmission lines, and utility-developer joint ventures, alongside a range of potential revenue models, including congestion rents, capacity auctions, cap-and-floor mechanisms, wheeling charges, power purchase agreement (PPA)-anchored transmission service agreements, and trade tariff supplements. Complementing this perspective, William Stroll of Pinsent Masons highlighted regulatory and institutional barriers, noting that limited third-party access frameworks and unclear revenue mechanisms continue to deter private sector participation.
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Photo 3. Clockwise - Wen Bin Lim and Yaxin Zhu of KPMG (top left and right, respectively) and William Stroll of Pinsent Mason (bottom) presenting diagnostic review of transmission financing landscapes across ASEAN.
During the Q&A session, participants explored the feasibility of combining multiple revenue models, to which Yaxin Zhu noted that hybrid approaches are possible, subject to national regulatory frameworks and project-specific considerations. The session was followed by a knowledge-sharing session led by Yinglun Teng of the International Energy Agency (IEA), who emphasised the importance of establishing robust, standardised regulatory frameworks over reliance on bespoke contractual arrangements. He further outlined seven priority actions to scale interconnector development, reinforcing earlier discussions on governance and investment clarity.
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Photo 4. Knowledge-sharing session by Yinglun Teng of IEA (top) and Panel Discussion with Anthony Maxwell of ADB and Yussuf Uwamahoro of the World Bank, moderated by Wen Bin Lim of KPMG (bottom).
The subsequent panel session, moderated by Wen Bin Lim, provided practitioner insights from multilateral development banks (MDBs). Anthony Maxwell of the Asian Development Bank (ADB) and Yussuf Uwamahoro of the World Bank examined the complexities of cross-border interconnection, particularly subsea interconnectors. Anthony highlighted challenges including high upfront costs, extended project timelines, and supply chain constraints. The discussion shed light and simultaneously provided less congested pathways for the development of the Sumatra–Malaysia subsea interconnection. Yussuf expanded on bankability and implementation challenges, drawing lessons from interconnection projects in West Africa as well as large-scale initiatives such as Viking Link and the Italy–Tunisia interconnection to compliment the discussion.
The fourth session turned to comparative reflections on cross-border power projects, assessing both successes and shortcomings. Yaxin Zhu and Philip Napier-Moore of Mott MacDonald presented case studies examining financing structures, tariff design, and governance models in multilateral electricity trade. Philip highlighted projects such as Greenlink and other high-voltage direct current (HVDC) interconnections across the United Kingdom, the United States, and Australia, illustrating the evolution of investment models across different regulatory contexts. He also outlined contracting approaches, including full turnkey EPC and two-lot strategies.
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Photo 5. Cross-border power projects reflections by Yaxin Zhu and Philip Napier-Moor of Mott MacDonald (top) and Panel Discussion with Benjamin Denis and Cornelia Schenk of OECD, James Bragg of IEA, and Randi Kristiansen of GFANZ.
The fifth session focused on mobilising private capital for transmission projects in ASEAN, moderated by Wen Bin Lim. While discussions were broad-ranging, key themes included persistent investment gaps and fiscal constraints, the need to expand alternative financing models, the importance of balanced risk allocation to enhance bankability, and the critical role of policy and institutional reform in enabling private sector participation. Perspectives were shared by Benjamin Denis and Cornelia Schenk of the OECD Clean Energy Finance and Investment Mobilisation (CEFIM), James Bragg of International Energy Agency (IEA), and Randi Kristiansen of Glasgow Financial Alliance for Net Zero (GFANZ), collectively underscoring that regulatory clarity and financial innovation must advance in tandem.
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Photo 6. Participation from ASEAN Member States (AMS).
As a way forward, ACE is committed to deepening regional collaboration, strengthening regulatory coherence, and advancing innovative financing solutions to unlock investment in cross-border transmission infrastructure. These efforts will accelerate the realisation of a more integrated, resilient, and sustainable ASEAN Power Grid.
