ADB Approves $1.5 Million Smart Energy Program for Azerbaijan and Thailand

The Asian Development Bank (ADB) has approved a new technical assistance program aimed at accelerating the deployment of smart energy systems and strengthening grid integration infrastructure to support renewable energy adoption across developing member countries.

The initiative, titled “Accelerating Deployment of Smart Energy Systems and Grid Integration Infrastructure (Subproject 2),” has a total budget of $1.5 million and will be financed through the Smart Energy Innovation Fund. The first phase of the program will focus on Azerbaijan and Thailand.

According to ADB, Subproject 2 is designed to support investments in smart energy systems and grid infrastructure that enable higher levels of renewable energy integration. The program also promotes the adoption of innovative technologies and digital solutions to modernize power systems and enhance grid flexibility and resilience in participating countries.

ADB said the subproject may be expanded to other developing member countries depending on evolving needs and ongoing discussions. Potential areas of future support include electric mobility and charging infrastructure in Kazakhstan, data center-related energy solutions in the Kyrgyz Republic, and sustainable and resilient power supply systems for data centers in Thailand.

The technical assistance program aims to deliver practical solutions incorporating smart grids, renewable energy integration, and cross-sector clean energy applications. Planned activities include country partnership strategy-level assessments, sector- and technology-specific studies, and private sector development diagnostics. The subproject will also support project identification and the preparation of preliminary and full feasibility studies for both sovereign and non-sovereign initiatives.

In addition, ADB will focus on enhancing technology readiness in beneficiary countries through knowledge transfer and technical training to strengthen local capacity for deploying advanced energy systems.

ADB has been supporting Azerbaijan since the country joined the bank in 1999. Over this period, ADB has invested approximately $5.6 billion in the country, covering both public and private sector projects, with energy and transport accounting for the largest share of financing. Under its current partnership strategy, ADB has indicated it is prepared to invest up to $2.5 billion in Azerbaijan.

Established in 1966 and headquartered in Manila, the Asian Development Bank has 69 shareholder countries, including 50 from the Asia-Pacific region, and plays a key role in financing energy transition and sustainable infrastructure development across the region.