ASIATODAY.ID, SINGAPORE — Singapore has resumed electricity imports from Laos through Malaysia, signaling the revival of a long-stalled cross-border power trading project in Southeast Asia.
The latest agreement brings Malaysia’s state-owned utility Tenaga Nasional Berhad (TNB) back into a pivotal role as a regional energy transit hub.
The two-year deal reactivates a project that had been suspended since 2024 and forms part of ASEAN’s broader ambition to build an integrated regional electricity network, known as the ASEAN Power Grid.
In a regulatory filing, TNB confirmed it has signed the Energy Wheeling Agreement Phase 2, enabling electricity generated in Laos to be transmitted to Singapore via existing power grids in Thailand and Malaysia. Under the agreement, up to 100 megawatts of power capacity from Laos can be delivered to Singapore.
TNB emphasized that its role is strictly limited to providing transmission services, not selling electricity. The power remains owned and produced by Laos, while Singapore acts as the final recipient.
A Project Restarted After a Political Pause
Cross-border electricity trade in this corridor is not new. The first phase of the agreement began in 2022 and expired on June 22, 2024. However, negotiations to extend the project were delayed due to domestic political changes in Thailand, which disrupted regional coordination.
Malaysia’s energy minister previously acknowledged that the political transition in Thailand played a key role in postponing the renewal of the agreement.
Payment Structure and National Roles
Under the new deal, signed on Wednesday , January 14, 2026, Laos’ state power company Electricite du Laos will pay TNB for wheeling services. This allows Malaysia to generate revenue from the use of its national transmission infrastructure, while ownership and production of electricity remain with Laos.
The arrangement highlights a mutually beneficial framework, with each country occupying a distinct position in the regional energy supply chain.
Stepping Stone Toward the ASEAN Power Grid
The agreement represents the second phase of the Lao PDR–Thailand–Malaysia–Singapore Power Integration Project, widely viewed as a foundational step toward the realization of the ASEAN Power Grid.
The project underscores how Southeast Asian nations are increasingly relying on cross-border cooperation to strengthen energy security, optimize existing infrastructure, and advance regional decarbonization—without the need for massive new domestic power generation investments. (AT Network)
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