Policy Brief

Powering ASEAN Smart Cities: Energy as the Backbone of Urban Innovation

Author : Afham Kilmi, Rika Safrina, Fadel Maulana, Silvira AYu Rosalia Published Date: 19 January 2026
AGEP Programme Report 2021

Highlights

  • Energy demand in the ASEAN region rapidly increases due to the rapid urbanisation rate, with cities acting as the centre of
    energy demand.
  • Smart urban energy systems can address the growing challenges of rising energy demand by focusing on the intersection of
    three forces: decarbonisation, digitalisation, and decentralisation.
  • ASEAN’s smart-city landscape exhibits rapid but uneven progress, with cities widely adopting renewables, while more
    advanced initiatives, such as smart grids, digital twin systems, and data-driven governance, remain concentrated in places
    with stronger institutional and digital readiness.
  • ASEAN smart city progress remains fragmented because the core barriers lie not in technology availability but in missing
    structural foundations, such as funding, data interoperability, institutional coordination, and digital readiness, that prevent
    cities from scaling and sustaining innovative urban initiatives.
  • Policy actions must focus on integration, financing, digital tools, cybersecurity infrastructure, and people.