Is ASEAN ready to move to multilateral cross-border electricity trade?

This paper reviews progress towards the establishment of an Association of Southeast Asian Nations (ASEAN) Power Grid (APG) and the key barriers to multilateral cross-border electricity trade in ASEAN. An analysis across political, technical, institutional, economic, environmental, social and time dimensions is employed. Using a policy sequencing framework, the paper concludes it remains premature for ASEAN to pursue a strong form of power sector market integration on account of the sizeable barriers that currently remain, especially economic and institutional barriers. Focusing on bilateral power purchase agreements and large-scale investments in solar and wind power over 2022–2030 would help to develop stronger foundations for ASEAN to make steps towards deeper regional integration in the electricity sector in subsequent years, while also being consistent with renewables adoption goals.