Southeast Asia's Subsea Power Cables: Key to Energy Transition

• •Subsea power cables are vital for the ASEAN Power Grid's success.
• •Six subsea cable projects are in advanced planning stages, enhancing energy trade.
• •Early-stage risks in financing and manufacturing capacity threaten project timelines.

The ASEAN Power Grid (APG) is gaining momentum with the development of subsea power cables, which are crucial for energy security and cross-border electricity trade in Southeast Asia. Since 2022, the APG has shifted from bilateral to multilateral electricity trading, with six subsea cable projects in advanced negotiation stages. The Joint Statement from the 43rd ASEAN Ministers on Energy Meeting in 2025 emphasized the importance of subsea cables as a 'key building block' for the APG. These cables will facilitate the integration of renewable energy sources and help meet the region's growing electricity demand, projected to triple by 2050. However, early-stage risks related to financing and manufacturing capacity pose challenges for project developers. Policymakers are urged to engage subnational actors to address these challenges effectively. The completion of the Submarine Power Cable Development Framework is expected during the 2026 Philippines Chairmanship of ASEAN.