support and peak-shaving.32 The move from feed-in tariffs to auction-based contracts for difference strengthens market alignment but creates short- term investor uncertainty.33 To maintain stability, approvals for new coal capacity continue,34 with plants increasingly used as flexible backup as market frameworks evolve to integrate energy, ancillary services and capacity mechanisms. China’s innovation momentum centres on system- scale integration. Ultra-high-voltage transmission, advanced power electronics, digital grid management and AI-based diagnostics support rapid renewable deployment.35 Cloud-based fault detection reduces downtime, while AI forecasting and digital twins enable 98% accuracy and second-level balancing across large grids. These advances link with emerging market designs as a unified national electricity market grows, supported by digital platforms for green power trading and distributed VPPs. China is exporting not only technology but a systemic model for large-scale integration of renewables, AI, storage and manufacturing. The next wave of innovation will deepen these linkages and support exportable models for system-wide flexibility and deep decarbonization. ASEAN: innovation through integration and finance Electricity demand in South East Asia is set to double by 2040.36 Governments are raising clean energy targets and introducing policies to speed up renewable deployment. The ASEAN Power Grid could mobilize around $760 billion in generation and transmission investments by 2045,37 enabling resource sharing and energy security. Despite this momentum, progress remains uneven. Markets with young fossil fuel fleets and long- term take-or-pay contracts face complex financial transitions. Renewable energy costs remain above global benchmarks in several countries, while high financing costs and limited market liberalization constrain private investment.38 Project pipelines are slowed by inconsistent regulation and limited feasibility studies. Meanwhile, electricity-access gaps persist in countries such as Myanmar.39 SMRs are gaining attention as low-carbon alternatives, although public acceptance, financing and deployment timelines remain challenges. ASEAN’s transition reflects both opportunity and constraint: rapid clean energy growth coexists with fossil fuel dependence. Innovation focuses on national priorities – scaling-up renewables, improving grid flexibility and attracting investment – while laying the groundwork for regional integration. The ASEAN Power Grid initiative and Singapore’s grid digital twin, which simulates EV, solar and distributed energy integration, show how digital tools enhance planning across borders. Storage, digitalization and AI can add flexibility and reduce the need for major grid expansion, while data centre demand can anchor investment through long-term offtake contracts. Decentralized generation – rooftop solar with storage, smart tariffs and VPP-style aggregation – provides local flexibility aligned with system needs. Blended finance, labelled bonds and concessional funding are drawing private capital to grids. Long-term investment will depend on policy credibility, regulatory certainty and stronger project preparation. Over time, cross-border integration and digitalized trading could make ASEAN a prototype for interoperable power systems. India: innovation in digital grids and decentralized access By mid-2025 India’s clean energy – renewables and nuclear – accounted for almost half of total capacity,40 supported by larger auction volumes, rooftop solar incentives and accelerated hydropower permitting.41 Clean energy attracts over 80% of power sector investment, making India the world’s second-largest growth market for renewables.42 India will drive the biggest surge in global energy demand over the next two decades as its economy and population expand. It is projected to account for 12% of global energy demand by 2050.43 Bottlenecks persist: transmission delays and ecological limits have stranded over 50 GW of renewable capacity;44 thermal power – still about half of total capacity45 – remains essential for reliability; deployment of frontier technologies is uneven; and financing conditions lag behind the pace of deployment. Innovation in India spans digital grid modernization and decentralized energy delivery, although progress varies across the value chain. Transmission utilities are deploying AI and GenAI, along with predictive maintenance systems, remote-controlled substations and cybersecure control centres. At the same time, microgrids, solar systems and energy-as-a-service (EaaS) models are expanding access and resilience at the local level.46 IoT-enabled solar utilization platforms reflect India’s shift towards smarter, self-balancing systems. Together, these advances are shaping a hybrid ecosystem – centralized in capacity yet decentralized in delivery – where digital infrastructure, adaptive finance and local entrepreneurship drive universal electrification. The next phase of progress will hinge on strengthening grid intelligence, modernizing distribution utilities and scaling-up locally tailored solutions, supported by regulatory reforms that can accelerate adoption. In ASEAN, renewable energy costs remain above global benchmarks in several countries, while high financing costs and limited market liberalization constrain private investment. India will drive the biggest surge in global energy demand over the next two decades as its economy and population expand. It is projected to account for 12% of global energy demand by 2050. Electricity Reinvented: How Innovation is Transforming the Future of Power Systems 11

Electricity Reinvented 2026