Thai Cabinet Seals Two Major Deals to Boost ASEAN Power Grid and Achieve Net Zero
Energy Ministry secures cross-border electricity link with Laos, Malaysia, and Singapore, while joining 11-nation pact to accelerate clean energy transition
- The Cabinet approved the Lao PDR, Thailand, Malaysia, and Singapore Power Integration Project (LTMS-PIP) to advance the ASEAN Power Grid through multilateral electricity trading.
- Thailand is expected to benefit from the power grid project by generating revenue from "Wheeling Charges" for the use of its transmission lines and by bolstering its national energy security.
- A second approval was given for a joint statement with the Asia Zero Emission Community (AZEC), a partnership of 11 nations committed to achieving carbon neutrality.
- Through the AZEC initiative, Thailand will gain access to green finance, technical expertise, and financial assistance from Japan and other partner countries to support its climate goals.
The Thai Cabinet has approved two critical energy initiatives, paving the way for greater regional power integration and a concerted push towards Net Zero emissions across Asia.
On 14 October 2025, Auttapol Rerkpiboon, the Minister of Energy, confirmed the Cabinet’s endorsement of the 6th Joint Statement for the Lao PDR, Thailand, Malaysia, and Singapore Power Integration Project (LTMS-PIP).
The statement signifies a collective commitment from the Energy Ministers of the four nations to develop multilateral cross-border electricity trading, which is a key cornerstone of the ASEAN Power Grid (APG).
The Minister explained that the APG will enhance the stability of the region’s power infrastructure, expedite the energy transition through investment, and promote the harnessing of renewable energy capacity.
Under the initial phase of the LTMS-PIP, Laos has been selling up to 100 megawatts of electricity to Singapore, transmitted through the grids of Thailand and Malaysia.
The second phase will see Malaysia sell additional power to Singapore, raising the total trading volume to 200 megawatts.
Crucially, the project is expected to benefit Thailand by generating revenue through Wheeling Charges—the fees levied for using its transmission lines—and by bolstering long-term national energy security.
The official signing of the draft Joint Statement is scheduled for 16 October 2025, in Kuala Lumpur, Malaysia, during the 43rd ASEAN Ministers on Energy Meeting (AMEM).
Asia Zero Emission Community (AZEC)
The Cabinet also approved the draft Joint Statement for the 3rd Ministerial Meeting of the Asia Zero Emission Community (AZEC).
This forum confirms the shared climate goals of 11 partner countries: Australia, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
Operating under the guiding principle of "One Goal, Various Pathways," the AZEC initiative is dedicated to tackling climate change and achieving carbon neutrality.
Discussions will focus on finding solutions for reducing greenhouse gases in sectors that are traditionally difficult to decarbonise, primarily through developing clean energy technologies, supporting carbon markets, and monitoring supply chain emissions.
For Thailand, AZEC offers a vital opportunity to access green finance innovation, financial assistance, and technical expertise from Japan and the other partner countries.
“These two forthcoming activities clearly demonstrate that Thailand, through the Ministry of Energy, is focused on energy security, generating national revenue, and environmental stewardship via the target of reducing carbon dioxide emissions,” Minister Auttapol stated. “It is excellent that the international community in the region is prioritising this and has shared goals for joint action. The benefits to Thailand extend beyond innovation and revenue; they also help build strong regional alliances.”
