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The next phase of South-east Asia’s energy transition: Fixing the grid

Renewables are growing fast, but the region’s push to boost green power hinges on upgrading ageing infrastructure

Tan Ai Leng
Published Tue, Jun 2, 2026 · 07:00 AM
    • Surging demand from data centres, electric vehicles and green industrial parks is placing unprecedented strain on power systems.
    • Surging demand from data centres, electric vehicles and green industrial parks is placing unprecedented strain on power systems. PHOTO: PEXELS

    [KUALA LUMPUR] South-east Asia’s green energy push is entering a harder phase, as Middle East tensions and surging power demand amid a data centre boom, shift the real transition battleground from generation to the grid.

    For years, the region’s transition story centred on building more solar farms, wind projects and hydro capacity. The bigger challenge lies in modernising ageing power systems, strengthening cross-border electricity links and ensuring that clean energy can be delivered reliably to where demand is growing fastest.

    Malaysia’s Deputy Prime Minister Fadillah Yusof said that Asean member states have agreed to accelerate the implementation of the Asean Power Grid (APG) and broader regional energy connectivity initiatives to strengthen energy security cooperation.