A future with net zero emissions requires scaling up improvements in energy efficiency, electrification of end uses and renewable energy generation. For the Association of Southeast Asian Nations (ASEAN), a growing population and rising standards of living will massively increase future energy demand. Mitigating growing electricity demand and integrating renewable energy into electricity generation will therefore be paramount for the region’s clean energy transition and avoid lock-in of additional fossil fuel generation. The intermittent nature of variable renewable energy and increasing deployment of distributed energy resources are putting additional pressure on existing grids. In response to these challenges, this report explores the opportunities and challenges for efficient grid-interactive buildings in the ASEAN region.

Such buildings are becoming a crucial element for the global ambition to attain net zero emissions, as they can combine enhanced energy efficiency, advanced smart digital technologies and decarbonised electricity generation. This integration creates the potential for buildings to shift from energy-intensive consumers to low-carbon prosumers, empowered by digital technologies that can offer flexibility benefits to the electricity grids. With the ability to produce, consume, store, sell and buy energy, buildings become active participants in the building-to-grid ecosystem.

Drawing on relevant international trends and best practices, the current report lays out an analytical framework to assess a variety of factors that can enable a building to become energy efficient and grid-interactive. The framework is used to analyse the current situation in countries of the ASEAN region. The report provides policy-oriented recommendations and guidelines tailored to different stages of the process for adopting efficient grid-interactive solutions in buildings. These recommendations can support ASEAN policy makers in their policy development to create an energy-efficient and grid-interactive built environment, contributing to a cleaner and more sustainable energy future