With the accelerated emergence of the electricity alliance concept among Vietnam, Thailand, Malaysia, and Singapore, the long dormant ASEAN power grid integration process has finally found a new breakthrough.

For a long time, the ASEAN power grid has been a highly influential and challenging regional integration project in Southeast Asia. Nowadays, regional electricity demand is rising, countries are accelerating their low-carbon development pace, energy security demands continue to increase, and cross-border power cooperation is gradually shifting from long-term planning to practical needs. Research by relevant institutions shows that building multiple regional multilateral electricity trading mechanisms is a practical choice for promoting power grid interconnection at this stage, rather than completing the integration of the entire ASEAN electricity market at once. After the phased achievements of the Laos Thailand Malaysia Singapore power integration project, the concept of a VTMS power alliance consisting of Vietnam, Thailand, Malaysia, and Singapore has gradually emerged.

Explore new modes of cooperation

Many ASEAN countries have already tried various forms of cross-border electricity trade, and the Laos Thailand Malaysia Singapore electricity integration project is one of the benchmarks. This project has achieved multi country grid linkage transmission for the first time, accumulating rich experience for the development of regional electricity markets. Relevant institutions believe that the establishment of a multilateral electricity cooperation mechanism by Vietnam, Thailand, Malaysia, and Singapore has strong feasibility and demonstration effects. The four countries have mature cross-border transmission facilities, sound electricity markets and regulatory systems, and relevant cooperation experience, which have important reference value for the construction of the entire ASEAN power grid.

The VTMS pilot project is an important practice in implementing multiple ASEAN energy plans and has been recognized by the ASEAN Energy Ministerial Meeting. The support for multilateral power cooperation within the region continues to increase. This cooperation model can meet multiple needs such as business development, energy security, and green transformation in the four countries. Singapore previously approved the plan to import clean electricity from Vietnam, initially planning to build a direct submarine cable. In May 2026, Vietnam, Malaysia, and Singapore reached an agreement to optimize the transmission scheme, with electricity being sent from Vietnam to Malaysia and then transmitted to Singapore through the existing local power grid. The new plan significantly shortens the length of submarine cables, reduces construction costs and difficulties, and minimizes coordination challenges in the sea area. Vietnam has abundant offshore wind power resources, which can meet the electricity needs of both Singapore and Malaysia. Multi country cooperation can also share project investment and alleviate the financial pressure of a single country.

Significant potential for expansion and upgrade

The addition of Thailand has further optimized and upgraded the VTMS cooperation plan. The three countries of Thailand, Malaysia, and Singapore have already achieved power grid interconnection and plan to expand cross-border transmission channels. After Thailand's entry, it can not only introduce clean energy from Vietnam, but also expand the electricity consumption market and enhance the commercial value of the project. The four countries will build a multi-directional electricity trading network, optimize the efficiency of electricity allocation, and promote the maturity of the regional electricity market.

According to the plan, the VTMS pilot will be implemented and put into operation in 2026. At the beginning of the project, the core is to establish a technical and institutional system, with a focus on unifying power grid standards, setting transmission costs, formulating transaction rules, exploring financing models, evaluating line schemes, and building industry capacity. The project will also comprehensively calculate costs and benefits, providing reference for subsequent investments. This pilot can not only assist in the implementation of ASEAN power grid cooperation documents, but also promote the deepening of electricity market reforms in various countries. Keywords: ASEAN power grid, Southeast Asia, energy transformation

Empowering regional energy integration

The VTMS project is a key lever for promoting ASEAN energy integration. Due to factors such as funding, regulation, and infrastructure, the progress of ASEAN power grid has been limited for many years. Expanding through small-scale pilot projects is a more practical development path. If this pilot project is successfully implemented, the relevant experience can be extended to other ASEAN countries to promote comprehensive interconnection of regional power grids. In the next 20 years, the demand for electricity in Southeast Asia will significantly increase. Cross border power cooperation is related to energy transformation, economic development, and energy security. The VTMS Quad Alliance will also become an important support for ASEAN to achieve its development goals.Editor/Gong Ziwei