The “industry alliance” will look to export green electricity, especially offshore wind power, from Vietnam to the other two countries, according to a statement from Singapore’s Sembcorp Industries Ltd today.

The pact comes as Asean steps up efforts to connect its 10 member countries through a regional power grid, which is seen as critical to meeting ambitious climate targets and voracious demand from sectors like artificial intelligence and data centres.

Still, the region will need to significantly ramp up grid investment to accommodate rapidly expanding renewables.

Announced on the sidelines of the Asean Summit in Kuala Lumpur, the collaboration will bring together a unit established by Tenaga Nasional Bhd and national oil and gas company Petroliam Nasional Bhd (Petronas) and subsidiaries of Sembcorp and PetroVietnam, the statement said.

The countries will evaluate the feasibility of exporting clean energy from Vietnam to Malaysia and Singapore via a new subsea cable and through the Malaysian grid, the statement said.

Currently, there are more than a dozen projects underway in Asean related to the regional power grid.