Chinese Investors Expected to Increase Involvement in ASEAN Power Grid Projects by 2026

Chinese clean-power companies are set to increase investments in Southeast Asia, driven by the ASEAN Power Grid (APG) initiative aimed at linking member countries' power systems by 2045. Chinese manufacturers, such as LONGi and Trinasolar, have established local operations in Indonesia and are involved in projects exporting solar power to Singapore.

Chinese state-owned enterprises are also participating, with Singapore's Equator Renewables Asia partnering with CRE International to import solar power from the Riau Islands. The region is crucial for China's top energy firms, contributing nearly 40% of their overseas portfolio.

Chinese EPC contractors like PowerChina are expected to play significant roles in large-scale APG projects. Financing will likely come from Chinese export credit agencies, the Asian Infrastructure Investment Bank, and multilateral development banks, which could help reduce project costs amid geopolitical uncertainties. Companies will prioritize projects with lower risks and better regulatory readiness.