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Member economies of the Asia-Pacific Economic Cooperation (APEC) forum account for more than 60% of global GDP and around 60% of global energy demand, while more than 45% of the Asia-Pacific region's crude oil and 23% of its natural gas come from the Middle East. At a time of heightened volatility in energy markets, regional energy supply security is coming under immediate pressure.
Ahead of the APEC summit, Energy Observer (eo), together with China Global Television Network (CGTN) and China Energy Media Group, conducted a joint interview with Armida Salsiah Alisjahbana, under-secretary-general of the United Nations and executive secretary of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), on issues including energy security amid geopolitical conflicts, cross-border power connectivity, and a just energy transition.
In Alisjahbana's view, the current energy shocks are becoming a catalyst for countries to accelerate the energy transition across the entire value chain, from power generation and transmission to end use. Power system connectivity is increasingly being viewed by governments as a strategic tool for managing regional energy risks. The success of the transition, she says, "should be measured not only by installed renewable energy capacity or emissions reductions, but also by whether it improves people's lives and leaves no one behind."
Alisjahbana took office in 2018 as under-secretary-general of the United Nations and executive secretary of ESCAP. Prior to that, she served from 2009 to 2014 as Indonesia's minister of National Development Planning and head of the National Development Planning Agency (BAPPENAS). She was also professor of economics at Universitas Padjadjaran and holds a PhD in economics from the University of Washington. Established in 1947 and headquartered in Bangkok, Thailand, ESCAP is the most inclusive intergovernmental platform in the Asia-Pacific region.
Energy shocks can be a catalyst for the transition
eo: With the energy crisis in the Middle East compounded by geopolitical conflicts, some Asia-Pacific economies that are highly dependent on imported fossil fuels have been among the hardest hit. Do you think this crisis could become a turning point that accelerates the energy transition? What steps can countries take?
Alisjahbana: The Asia-Pacific region accounts for more than half of global energy consumption. Given the sheer scale of energy demand and the reliance of many economies on imported fossil fuels, the region is particularly vulnerable to volatility in global energy markets and supply chains.
The current energy shock in the Middle East presents both a serious challenge and a strategic opportunity. On the one hand, it is disrupting global energy supplies and driving up energy prices, placing additional pressure on energy-importing economies. On the other hand, it is also providing fresh impetus for the region to accelerate its energy transition and creating new momentum for the development of more diversified and resilient energy systems. The energy shock is now acting as a catalyst, prompting countries to accelerate the energy transition across the entire value chain, from power generation and transmission to end use.
Governments can use this opportunity to accelerate the development of domestic renewable energy resources, diversify their energy mix, strengthen renewable energy industries and supply chains, and advance cross-border power interconnections through bilateral commitments and regional initiatives. In particular, power system connectivity is increasingly being viewed by governments as a strategic tool for managing regional energy risks. For example, the ASEAN Power Grid (APG) has been identified as a core priority under the ASEAN Plan of Action for Energy Cooperation (APAEC) 2026–2030 of the Association of Southeast Asian Nations (ASEAN).
Power grids are becoming increasingly important as critical enablers of renewable energy development and regional integration. Strengthening the resilience of grid infrastructure and accelerating its digitalization can help integrate higher shares of renewable electricity while maintaining the stability and reliability of power systems.
At the same time, there is also considerable potential on the demand side. Governments can seize this opportunity to advance efficient electrification across the transport, buildings and industrial sectors, reducing reliance on imported fossil fuels while providing more secure and affordable energy services.
ESCAP has been working closely with its member states to develop energy transition road maps and undertake integrated energy planning and capacity-building. These road maps support policy decision-making, helping countries strengthen energy security, enhance policy and institutional capacity, and promote investment. ESCAP also shares practical approaches to renewable energy development, energy efficiency improvements and digitalization in the energy sector. Through these efforts at both the national and regional levels, the current crisis can become a catalyst for building a more diversified, resilient and sustainable energy future for Asia and the Pacific.
Power system connectivity is taking shape, but institutional barriers remain a bottleneck
eo: From the ASEAN Power Grid to the Central Asia South Asia Electricity Transmission and Trade Project (CASA-1000), blueprints for regional power system connectivity have been in place for years, yet multilateral power trade has remained limited in practice. Where exactly do the main barriers lie—in technology or in institutional frameworks? And what role can ESCAP play?
Alisjahbana: Recent energy shocks have brought renewed attention to cross-border power system connectivity. Initiatives such as the ASEAN Power Grid, CASA-1000, the South Asian Association for Regional Cooperation (SAARC) Framework Agreement for Energy Cooperation (Electricity), and the North-East Asia Regional Power Interconnection and Cooperation Forum (NEARPIC) are all advancing regional integration.
In ASEAN, cross-border interconnection capacity has reached 7.7 GW, and the Laos-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP) has also demonstrated the feasibility of multilateral power trade. However, it is important to recognize that most ASEAN interconnections still operate on the basis of bilateral, unidirectional arrangements and long-term contracts, making it difficult to optimize the allocation of clean energy resources at the regional market level.
Institutional barriers remain significant. Electricity sectors across countries operate under different market structures and regulatory frameworks, ranging from vertically integrated monopolies to competitive markets. Reaching agreement on issues such as wheeling charges, third-party access, cost allocation, ancillary services pricing and market governance remains difficult. Countries also differ in infrastructure, technical standards and operational capabilities. A higher level of integration requires coordinated system planning, compatible technical standards, harmonized grid codes and dispatch procedures, as well as stronger domestic grids.
As the most inclusive intergovernmental platform in the Asia-Pacific region, ESCAP supports its member states through regional frameworks, coordination mechanisms and capacity-building. The "Regional Road Map on Power System Connectivity: Promoting Cross-border Electricity Connectivity for Sustainable Development," endorsed by member states in 2021, provides a non-binding reference framework covering political consensus-building, regulatory harmonization, multilateral power trade, coordinated planning, investment, and alignment with the Sustainable Development Goals (SDGs).
Taking the ASEAN Power Grid (APG) as an example, ESCAP is working with the ASEAN Energy Regulators' Network (AERN), the ASEAN Secretariat and other partners to establish the ASEAN School of Regulation (ASR), which will provide training, peer learning and research support for multilateral power trade.
Power system connectivity must also remain aligned with the SDGs. ESCAP's Green Power Corridor Framework provides a flexible set of principles and metrics for evaluating and guiding connectivity initiatives, with the aim of expanding the supply of clean, affordable and secure electricity while taking economic and technical feasibility into account, integrating renewable energy, and delivering broader environmental and social benefits. ESCAP also supports its member states in strengthening technical capacity in integrated power system and transmission planning, renewable energy integration, and the assessment of the economic, social and environmental benefits of power system connectivity.
The transition must leave no one behind
eo: For many developing economies, the energy transition is first and foremost about whether people can continue to access and afford energy. How do you view equity in the energy transition? And how can we ensure that no one is left behind?
Alisjahbana: The Asia-Pacific region has made significant progress in expanding access to energy. According to ESCAP's 2025 Regional Trends Report on Energy for Sustainable Development, the share of the region's population with access to electricity rose from around 80% in 2000 to over 98.6% in recent years.
As member states accelerate their energy transitions, the focus is shifting from providing physical electricity connections towards universal access to high-quality energy services—services that are reliable, affordable, sufficient to meet people's needs and increasingly clean. The transition can also deliver cleaner air, greater energy security, and new sources of jobs and economic growth. According to ESCAP estimates, the Asia-Pacific region could gain around 14 million new clean energy jobs by 2030.
However, these benefits may not be evenly distributed. Against a backdrop of continued reliance on fossil fuels, geopolitical uncertainty and financing constraints, the immediate costs of the transition may fall disproportionately on vulnerable groups, including workers and communities dependent on carbon-intensive industries, low-income households facing affordability pressures, and rural and remote communities with limited access to investment, skills development and new technologies. Women, young people, persons with disabilities, indigenous people, and other marginalized groups may also face systemic barriers and remain underrepresented in employment and decision-making in the energy sector.
A just energy transition therefore requires policies that enable these groups to participate in and benefit from the transition. These policies should include skills training and continuing education to help workers access new employment opportunities; social protection and targeted support for affected households and communities; and meaningful participation and social dialogue to ensure that the voices of workers, women and young people are reflected in energy planning.
ESCAP places strong emphasis on ensuring that the energy transition advances decarbonization while also promoting socioeconomic prosperity and social inclusion. Transition pathways need to reflect each country's development priorities, institutional capacity and fiscal space, as well as its access to finance and technology.
It is against this backdrop that ESCAP launched the Energy Transition for Green Growth and Prosperity (ETGGP) initiative, which promotes an integrated approach to energy, economic, industrial and social policies. The initiative is structured around three mutually reinforcing pillars: analytical policy support and capacity-building; the development of green power corridors; and green finance for the energy transition. Through country-level support and cooperation with member states and partners, ETGGP aims to advance country-led energy transitions that promote growth in green energy and job creation while strengthening social inclusion.
In short, the success of the energy transition should be measured not only by installed renewable energy capacity or emissions reductions, but also by whether it improves people's lives and leaves no one behind.
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