The segment of the ASEAN Power Grid (APG) connected to Sarawak is poised to play a crucial role in driving regional decarbonisation efforts by supplying low-carbon hydropower across Southeast Asia. The Prime Minister highlighted Sarawak's potential to become a major energy hub for Malaysia and ASEAN, emphasizing the state's rich energy resources, including hydropower, gas, and hydrogen. The state aims to significantly increase its renewable energy capacity to 15 GW by 2035, with a focus on hydropower development, solar scale-up, and hydrogen deployment. Trung Ghi, an expert in the energy sector, emphasized the importance of regulatory alignment and institutional readiness in advancing the APG initiative. He mentioned that executing cross-border energy projects poses challenges such as land acquisition, environmental clearances, and regulatory harmonisation, requiring continued coordination among governments, regulators, and industry players. The APG vision necessitates substantial investment for power generation and transmission infrastructure, estimated at US$764 billion. To support this, the ASEAN Power Grid Finance Facility Framework is set to be launched, with the Asian Development Bank (ADB) committing up to US$10 billion for cross-border energy infrastructure. Sarawak's success in leveraging hydropower for exports could serve as a model for other sub-regional linkages within ASEAN. Lessons from Europe and China in terms of central coordination, technical harmonisation, and investor confidence can guide ASEAN's energy transition. Climate finance instruments like green bonds and blended finance are expected to play a significant role in financing clean energy projects. As Sarawak's hydropower-driven export model gains traction, it is projected to drive sustainable growth and energy resilience in the region.