ADB sets up $25m facility to advance ASEAN Power Grid integration

The cross-border power plans hinge on early-stage financing support.

The Asian Development Bank (ADB) has launched the Regional Connectivity Fund for Energy in Southeast Asia, a $25m multi-partner trust fund aimed at accelerating development of the Association of Southeast Asian Nations (ASEAN) Power Grid.

The fund will finance early-stage preparation for cross-border energy and transmission projects across ASEAN, including feasibility studies, engineering design, financial structuring, and safeguards assessments.

It will also provide technical assistance, policy advice, and capacity building to improve regulatory frameworks and project readiness.

The initial funding comes from Australia, Canada, Germany, and the United Kingdom, as well as the European Union.

The facility operates under the ASEAN Infrastructure Fund and will be managed by ADB in coordination with ASEAN member states.

ADB said the fund will support the development of bankable projects aligned with regional priorities and strengthen the pipeline for cross-border electricity connections.

As energy demand in Southeast Asia is expected to triple by 2050, the ASEAN Power Grid aims to expand access to reliable and affordable electricity, including renewable sources such as solar, wind, and hydropower.

ADB has pledged up to $10b over 10 years for the ASEAN Power Grid and related investments, including national transmission projects and renewable energy infrastructure that enables cross-border electricity trade.

In October, ADB launched a financing initiative for the grid with the ASEAN Secretariat, the ASEAN Centre for Energy, and the World Bank.

The fund is part of broader ADB efforts to support ASEAN through initiatives in capital markets development, artificial intelligence readiness, the blue economy, and river basin resilience.