Interconnection, Not Isolation, is ASEAN’s USD4.8 Trillion Lever - IRENA – International Renewable Energy Agency
Published January 16, 2026
Interconnection, Not Isolation, is ASEAN’s USD4.8 Trillion Lever
The International Renewable Energy Agency (IRENA) has released a comprehensive report highlighting the significant potential of renewable energy in the ASEAN region, emphasizing the importance of interconnection among member states as a means of unlocking a staggering USD 4.8 trillion in economic opportunities. The report underscores that by fostering increased connectivity and collaboration, ASEAN can accelerate its transition to sustainable energy systems, enhance energy security, and drive economic growth.
According to IRENA’s analysis, the ASEAN region is at a critical juncture where it can leverage its abundant renewable energy resources. The report outlines that the region holds the potential to generate approximately 1,700 gigawatts (GW) of renewable energy capacity by 2030, which is vital for meeting the growing energy demand of its member countries. This transition is not only essential for achieving energy independence but also for addressing climate change and fostering sustainable development.
One of the key findings of the report is that interconnecting the electricity grids of ASEAN member states can facilitate the sharing of renewable energy resources, thereby optimizing energy production and consumption. The establishment of a regional electricity market would enable countries to trade electricity across borders, leading to a more resilient energy system. IRENA estimates that such interconnections could reduce overall energy costs by up to 30%, significantly benefiting consumers and businesses alike.
Furthermore, the report highlights that the transition to renewable energy in the ASEAN region could create millions of jobs. IRENA projects that approximately 2.1 million jobs could be generated in the renewable energy sector by 2030, driven by investments in solar, wind, and other renewable technologies. This job creation is crucial for enhancing local economies and building a skilled workforce that can support the transition to a sustainable energy future.
The IRENA report also emphasizes the importance of policy frameworks and regulatory measures that support interconnection efforts. It calls on ASEAN governments to adopt policies that promote investment in renewable energy infrastructure, facilitate cross-border electricity trade, and encourage regional cooperation. By creating a conducive environment for investment, member states can attract private sector participation and accelerate the deployment of renewable energy technologies.
In addition to economic benefits, the report outlines the environmental advantages of transitioning to renewable energy. By increasing the share of renewables in the energy mix, ASEAN countries can significantly reduce greenhouse gas emissions and contribute to global climate goals. IRENA estimates that a shift to renewable energy could help reduce emissions by up to 1.2 gigatons of CO2 equivalent by 2030, aligning with international climate commitments.
Moreover, the report underscores the importance of technological innovation in driving the renewable energy transition. IRENA calls for increased investment in research and development to enhance the efficiency and affordability of renewable technologies. By fostering innovation, ASEAN can position itself as a leader in the global renewable energy market and attract foreign investments.
IRENA's findings are particularly timely, given the ongoing discussions surrounding energy security and sustainability in the wake of global challenges such as the COVID-19 pandemic and geopolitical tensions. The agency emphasizes that a collaborative approach among ASEAN member states is essential for building a resilient energy future that can withstand external shocks and fluctuations in energy supply.
In conclusion, the IRENA report presents a compelling case for interconnection as a strategic lever for the ASEAN region. By prioritizing collaboration and connectivity, ASEAN can unlock vast economic opportunities, drive job creation, and contribute to global climate goals. The transition to a sustainable energy future is not only achievable but also imperative for the prosperity and resilience of the region.
As ASEAN countries continue to navigate the complexities of energy transitions, the recommendations outlined by IRENA serve as a roadmap for achieving a more interconnected and sustainable energy landscape. The agency encourages member states to take decisive action in implementing policies that support interconnection, investment, and innovation in the renewable energy sector.
The potential for a successful renewable energy transition in ASEAN is significant, but it requires a concerted effort from all stakeholders, including governments, private sector actors, and civil society. By working together, ASEAN can harness its renewable energy resources and pave the way for a sustainable and prosperous future.
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