Spending a Staggering $5.6 Billion! Singapore Builds a Unified Power Grid for Southeast Asia—with Chinese Enterprises as Key Drivers

Energy transition is underway worldwide—and ASEAN is no exception. At the 2025 ASEAN Summit, leaders from Malaysia, Vietnam, and Singapore jointly witnessed the signing of a cross-border energy cooperation project. The three participating enterprises are Malaysia’s MY Energy Consortium, Vietnam Oil & Gas Technical Services Company, and Singapore’s Sembcorp Utilities. In simple terms, the three countries are teaming up to develop clean energy projects in Vietnam—with plans to export electricity to neighboring countries in the future. This move may appear modest on the surface, yet it reflects ASEAN’s broader strategic vision for power interconnection—and Chinese enterprises will serve as pivotal enablers. 1 The ASEAN cross-border power grid initiative was spearheaded primarily by Singapore. Singaporean Prime Minister Lawrence Wong stated candidly that such regional power cooperation aims to build “a more reliable and resilient energy network” for the entire ASEAN region. In other words, the concept of a “super grid” for Southeast Asia has moved beyond rhetoric—it is now actively underway. Singapore already imports hydropower from Laos—transmitted via Thailand and Malaysia. Next, it plans to tap into solar power from Indonesia, wind power from Vietnam, and hydropower from Cambodia. ASEAN countries are weaving a genuine “regional power grid” through a growing network of cross-border transmission lines. Currently, Singapore has numerous power interconnection projects under planning—many involving substantial investment. A rough estimate shows that launched or ongoing clean energy projects and transmission lines collectively exceed USD 40 billion. Cross-border grid interconnection among ASEAN nations is not a new idea. It was first proposed as early as 1999—but back then, ASEAN remained relatively loose-knit, resulting in slow progress and immaturity of conditions. Today, however, the situation has changed: economic restructuring, mounting pressure for energy transition, and heightened national demands for power security have all made the “ASEAN Super Grid” far more realistic and urgent. The approach is incremental: starting with bilateral pilot projects, progressing toward regional connectivity, and ultimately advancing toward integrated regional power markets. As of October 2024, nine out of 18 key interconnection projects have officially entered operation, with a total installed capacity of 7.7 GW—of which 4.7 GW comes from independent power producers (IPPs), indicating that market forces—not just governments—are driving this transformation. Moreover, many additional projects are in the pipeline—for example: the submarine cable linking Sumatra to Peninsular Malaysia; the overland transmission line connecting Kalimantan to Sabah, Malaysia; and the upgraded interconnection between Thailand and Malaysia—progress is significantly faster than anticipated. 2 When discussing clean energy in Southeast Asia, Singapore is invariably central. This financial hub and technological frontrunner—ASEAN’s sole developed nation—is also the region’s undisputed leader in energy transition. Now that Singapore has secured support from Malaysia and Vietnam, is that sufficient? No. Ultimately, achieving its goals is impossible without Indonesia’s participation. Geographically adjacent and both pivotal ASEAN members, Singapore and Indonesia have no choice but to deepen energy cooperation—it is no longer optional, but essential. In Indonesia’s Riau Islands, a “Green Economic Corridor” project—explicitly endorsed by both governments—is already underway. According to the plan, a submarine cable will deliver clean electricity from Indonesia directly to Singapore—the tangible blueprint for regional energy interconnection is already drawn.

Mandatory Storage Deployment Window Opens: Over 20 Chinese Enterprises Rush to Seize New Opportunities

At the market deployment level, Risen Energy continues expanding its footprint in Malaysia, securing multiple partnerships in quick succession. In March this year, the company signed an agreement with local energy infrastructure firm Gebeng Energy to jointly develop a 500 MW photovoltaic project—including supporting energy storage—in Kedah State; the entire project will deploy Risen’s heterojunction ‘Fuxi’ PV modules and energy storage products. In January, Risen further partnered with local PV EPC provider Eco Persona to jointly explore commercial and industrial rooftop PV markets across northern Malaysia’s four states, prioritizing the rollout of its high-power HJT modules, string inverters, and commercial & industrial energy storage systems. ・ Mornsun Power On July 7, Mornsun Power announced a strategic partnership with TAMCO, a long-established Malaysian power enterprise. The two parties will collaborate closely on localization, system integration, testing & commissioning, and long-term service support for large-scale energy storage systems in Malaysia. They will jointly advance the local deployment of 5 MWh and 6 MWh liquid-cooled large-scale energy storage systems, accelerating the large-scale rollout of comprehensive storage solutions through leveraging local resources. Malaysia is a critical market for Mornsun’s Southeast Asian energy storage business. In recent years, the company has continuously delivered representative solar-plus-storage application cases locally: In early 2026, it supported a local manufacturing enterprise in building Malaysia’s first integrated project combining microinverters and commercial & industrial energy storage—providing a replicable solar-plus-storage model for commercial and industrial applications; in island energy scenarios, it delivered Malaysia’s first solar-wind-diesel microgrid project, enabling intelligent switching among photovoltaic generation, energy storage peak-shaving, and diesel backup. ・ Changhong Energy Recently, Changhong Sanjie—a subsidiary of Changhong Energy—received approval from the Mianyang SASAC to construct a lithium battery production line in Malaysia. This project forms a core component of Changhong Energy’s share placement fundraising plan. With a total investment of approximately RMB 999 million, the project will establish one production line each for the 18650 and 21700 battery series, adding an annual production capacity of 170 million cells upon completion—targeting overseas high-demand sectors including power tools and portable energy storage. Malaysia’s Mandatory Energy Storage Deployment Window Has Arrived The flurry of activity by Chinese energy storage enterprises in Malaysia reflects a market being reshaped by multiple converging forces. According to disclosures by TNB’s management, Peninsular Malaysia’s grid can accommodate roughly 6 GW of renewable energy—of which about 4.5 GW has already been installed. For every additional 1,000 MW of renewable capacity, approximately 500 MW of energy storage is required to maintain grid stability. On June 3, Malaysia’s Deputy Prime Minister Fadillah Yusof publicly announced that all 2 GW projects under Round 6 of the Large-Scale Solar (LSS6) program must incorporate mandatory energy storage—a direct policy response to this constraint. Consequently, energy storage has shifted from an “optional add-on” to a “mandatory requirement.” Meanwhile, grid-side energy storage deployment is also accelerating. TNB plans to deploy 3 GW of energy storage by 2028, backed by an approved capital expenditure of RM 4.2 billion. Deputy Prime Minister Fadillah also revealed that TNB-led Battery Energy Storage System (BESS) projects have already attracted nearly RM 1.5 billion in investment, with the overall project pipeline expected to reach several billion ringgit. Another critical variable stems from Johor State in southern Malaysia. Johor serves as a pivotal node in the ASEAN power grid interconnection. The IEA’s *Southeast Asia Energy Outlook 2026* identifies the cross-border corridor linking “Vietnam–Malaysia–Singapore” as a breakthrough priority for ASEAN grid interconnection. Gentari—the renewable energy arm of Malaysia’s national oil company PETRONAS—has likewise declared its ambition to position Malaysia as the “ASEAN Clean Energy Transit Hub.”

Singapore Grants Conditional Approval for Petronas-Led Regional Power Corridor

5 days ago

Singapore's Energy Market Authority granted conditional approval for a 1.3-gigawatt renewable electricity import project from Vietnam via Malaysia. The consortium led by Petronas expects imports to commence in 2035.

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Singapore Grants Conditional Approval for Petronas-Led Regional Power Corridor

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