ASEAN could save $2.3b by 2040 with smart grid investments

Indonesia, Vietnam, and the Philippines face the highest investment needs.

ASEAN could avoid $2.3b in economic losses by 2040 by upgrading its electricity systems to meet rising demand and renewable energy growth, according to a new report from energy think tank Ember.

The report estimates that $4b to $10.7b in investments are needed to modernize the region’s power grids through smart infrastructure.

An investment of around $4b would fund essential upgrades like smart meters and automated controls to improve reliability.

Spending up to $10.7b would enable a fully digitalised grid with advanced storage and cross-border connections, maximising renewable energy use.

Indonesia, Vietnam, and the Philippines face the highest investment needs due to frequent outages. Singapore and Malaysia are ahead with digital grid strategies, showing the benefits of early action.

From 2015 to 2020, ASEAN reduced power outage duration and frequency by 60%, but progress is slowed by financing gaps, fragmented standards, and uneven national policies. Many countries still lack smart tools like real-time monitoring and time-of-use tariffs, limiting renewable integration.

Smart grids link generation, transmission, distribution, and consumption through digital tools, allowing real-time balancing of supply and demand. This improves reliability, efficiency, and renewable energy uptake.

Singapore, Malaysia, Thailand, the Philippines, Indonesia, and Vietnam have launched smart grid projects, including smart metering, demand response, and cybersecurity integration.

The report also projects 243,000 to 649,000 new jobs from smart grid deployment across engineering, construction, IT, and operations. Reliable power would cut diesel generator use, lower household costs, and improve air quality.

To accelerate progress, Ember urged ASEAN governments to standardise regulations, mobilise funding, and coordinate regionally.