March2026 ReportBridging Connectivity: The Importance ofSubmarine Interconnections for the ASEANPower Grid (APG) March2026 Copyright © 2026 All rights reserved. No part of this publication may be reproduced, stored in a retrievalsystem, or transmitted in any form by any means, electronic or mechanical, withoutprior written notice to and permission from ACE. Published by:ASEAN Centre for EnergySoemantri Brodjonegoro II Building, 6th fl.,Directorate General of Electricity,Jl. HR. Rasuna Said Block X-2, Kav. 07-08Jakarta 12950 IndonesiaTel: (62-21) 527 9332 | Fax: (62-21) 527 9350aseanenergy.org Acknowledgements Bridging Connectivity: The Importance of Submarine Interconnections for theASEAN Power Grid (APG)is a reportproducedbyresearchersatthe ASEAN Centre forEnergy (ACE), based on insights gathered during theWorkshop onEnabling SubseaInterconnectors in ASEANheld7-9 October 2025 in Manila, Philippines. ACE would like to express its gratitude to Dato’ Ir. Ts. Razib Dawood, Executive Directorof ACE, for his leadership and support in advancing ASEAN’s energy cooperation agenda.Special appreciation is also extended to Nadhilah Shani, Head of the Power Generationand Interconnection Department,for her guidance in shaping this publication. ACE acknowledges the authors of this report, led by Ignatius Primadi Limin, with supportfrom Akbar Dwi Wahyono, Fajar Ikhsandy and Marcel Nicky Arianto, for their extensiveresearch and analysis. Appreciation is also given to Muhammad Bayu Pradana EffendyandFadhiel Handira Ishaq for the contributions to the publication’s design, andtoFirdaus Fadhlullah Designerindy and Amara Zahra Djamil for their efforts in preparing thecommunications strategy and supporting the final stages of preparing this publicationfor distribution. The authors would like to extend their gratitude to the Heads of ASEAN PowerUtilities/Authorities (HAPUA) Working Group 5 (HWG5) for their guidance, continuoussupport andcollaboration in ensuring the success of theworkshop facilitation. Thisreportaimsto summarise thekey findings fromthe workshop’sthree days ofevents. List of Acronyms and Abbreviations Executive Summary Strategicimportance:Submarine power interconnectors are critical to theimplementation oftheASEAN Power Grid (APG) andthesharing of renewable energyacross the region’s archipelagic geography.Sevenof the 18 priority APG projectsidentified undertheASEAN Power Grid Project Profileswill require submarine cable links(one submarine cablehasalreadybeen established). These linkswillconnect islandedsystems(Sumatra, Borneo and the Philippines) to mainlandgrids, unlocking significantenergysecurity and decarbonisation benefits. Current Status:ASEANcurrentlyhas about 7.7 GW of cross-border interconnectioncapacity, mostly via land lines. Several new projects (totaling 9.85 GW) are ongoing,which will bringthetotal capacity up to 17.5 GW by 2025. However, truly regional powertraderemains limited.Aside from domestic inter-island cables(notably in thePhilippines),theASEANMember States (AMS)lack experience with large internationalsubsea links.Discussions about the potential role ofsuch linksarevital.ASEAN’s cross-border capacity will need to morethan double by 2040 to meet regional growth and cleanenergy goals. Key Challenges:Deployment ofsubsea power links in ASEANrequiresovercomingtechnical, regulatory, financial and environmental hurdles.Due to thelimited pool ofsuppliersofhigh-voltage submarine cable systems,there arelong lead times. Upfrontcosts are enormous (often billions of USdollarsper project), straining project bankabilitywithout innovative financing. Regulatory misalignment between countries and the lackof precedent for multi-jurisdiction projects can impede progress. Operational risks–from marine hazards like anchor strikes to repair logistics–are non-trivial, as evidencedby 170 cable failures worldwide since 2016 (mostly due to fishing and anchoring).Environmental and social considerations (marine biodiversity, fishing communities,etc.)also require early and careful attention. Global Lessons:International experienceconfirmsthat submarine interconnectorsdeliver major benefits.In Europe, the UK’s National Grid leveraged multiple subsea linksto maintain supply duringsupply crunchesamidst winter peak demand, notably theViking Link, importing up to 5 GW from neighbours and exporting surplus wheneconomics favoured it. These interconnectors improved energy security, lowered costsfor consumers and reduced renewable curtailment.TheTen-Year Network DevelopmentPlan(TYNDP) ofthe European Network of Transmission System Operators for Electricity(ENTSO-E)(2020-2030))hasled to strong economic returns–eachEUR1 invested intransmission yields overEUR2in system savings. Australia’s experience, such aswithBasslinkand AAPowerLink,underscores both the value of connectingdiverse resourcesand the need for robust risk management. PolicyRecommendations:The AMSand partners shouldcollaborate toaccelerateregional coop