Regional grid integration in Southeast Asia region: Malaysia’s progress, barriers, and opportunities

The implementation of cross-border electricity trade has become a game changer in the energy industry and has emerged as a new international business model. The ASEAN Power Grid (APG) in particular serves as one of the key initiatives for interconnecting electric grid across the region, while strengthening regional cooperation and promoting cross-border electricity trade among ASEAN countries. This paper outlines the evolution of APG development and the formulation of the ASEAN Interconnection Masterplan Studies (AIMS I–III), focusing on Malaysia’s role as a strategic regional electricity hub supported by its advantageous geographic position and diverse energy resources within the ASEAN region. In addition, the paper examines key policies and market mechanisms established by the government to support cross-border electricity trading. Scientometric and patentometric analyses revealed that research on APG is relatively recent, with 69 publications since 2002 and a noticeable growth during the 2010s, particularly in 2017 and 2022 following key regional initiatives like the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP). Malaysia ranks as the second-highest contributor with eight publications, mainly focused on governance, policy, and infrastructure. Based on a survey conducted among 37 professionals working in the energy, utilities, and related sectors, the majority of respondents expressed strong confidence that APG integration can enhance Malaysia’s long-term energy resilience while accelerating the diversification of its energy mix. In terms of perceived challenges, respondents view regulatory and policy misalignment, as well as unclear taxation, tariffs, or wheeling charges, as more critical challenges compared to technical and operational issues.