Regional Energy Integration in Southeast Asia: from Bilateral Projects to a Common Energy Market

This article analyzes the development of regional energy integration within the Association of Southeast Asian Nations (ASEAN). It investigates the strategic drivers behind this process, including rising energy demand, external supply dependence, and the dual objectives of enhancing security and promoting decarbonization. The study focuses on the institutional framework provided by the ASEAN Plan of Action for Energy Cooperation (APAEC) and its practical implementation through two critical infrastructure initiatives: the ASEAN Power Grid (APG) and the Trans-ASEAN Gas Pipeline (TAGP). Using a typology of market integration stages, the paper assesses ASEAN’s shift from bilateral arrangements toward multilateral mechanisms. The analysis identifies a set of interrelated political, technical, and institutional conditions necessary for deeper integration. It also highlights persistent barriers, such as regula- tory fragmentation, infrastructure financing challenges, and risks related to national sovereignty. The article argues that, despite notable progress, the establishment of a fully integrated regional energy market will depend on overcoming significant systemic constraints through improved policy coordination.

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