ADB Launches First Multi-Partner Fund To Prepare Cross-Border Energy Projects And Speed Up ASEAN Power Grid By 2045

The Asian Development Bank has introduced the region’s first multi-partner fund designed to strengthen project preparation for cross-border energy and transmission infrastructure across the Association of Southeast Asian Nations. The new Regional Connectivity Fund for Energy in Southeast Asia will help accelerate progress toward the ASEAN Power Grid, which aims to achieve full regional power-grid integration by 2045.

According to ADB President Masato Kanda, the ASEAN Power Grid represents a major opportunity for the region, offering the potential to improve energy security for nearly 700 million people while supporting long-term economic growth. He emphasized that the new fund marks a significant step forward, enabling stronger investment readiness and helping turn ASEAN’s regional connectivity vision into practical action.

The fund is an important initiative under the ASEAN Infrastructure Fund, the largest regionally led infrastructure financing platform in Southeast Asia. It will expand the scale and impact of the AIF’s work. Initial funding of around $25 million has been contributed by the governments of Australia, Canada, the European Union, Germany, and the United Kingdom.

Managed by the Asian Development Bank in close coordination with the AIF Board and ASEAN member states, the fund will accelerate the preparation of regional energy projects by providing technical assistance and project preparation grants. This support will cover a wide range of activities, including feasibility studies, engineering and system design, financial planning, and environmental and social safeguard assessments.

It will also help strengthen the policy environment by financing work related to regulatory advice, institutional development, capacity-building, and knowledge exchange. These efforts ensure that projects linked to the ASEAN Power Grid are well-designed, financially viable, and aligned with the priorities of member countries. Southeast Asia’s energy demand is expected to triple by 2050.

A fully developed ASEAN Power Grid will make it easier for countries to access reliable, affordable, and cleaner electricity sources such as solar, wind, and hydropower. Improved cross-border power connectivity will also enhance regional resilience and support the transition to renewable energy.

To support this transformation, the ADB has committed up to $10 billion over the next decade for ASEAN Power Grid-related investments. This financial support will focus on helping countries strengthen national grids, develop renewable energy projects, and expand cross-border electricity trading. In October of last year, the ADB worked with the ASEAN Secretariat, the ASEAN Centre of Energy, and the World Bank to launch the ASEAN Power Grid Financing Initiative, further reinforcing regional cooperation on energy transition.

Recently, the ADB also announced that it plans to deepen its role as ASEAN’s primary development bank. Beyond supporting the power grid, the bank is advancing several other regional initiatives, including efforts to expand capital markets, develop infrastructure that enables the use of artificial intelligence, support blue-economy projects, and strengthen river-basin resilience across the region.

The Association of Southeast Asian Nations Infrastructure Fund was established in 2011 by ASEAN member states in partnership with the ADB. The fund aims to address regional infrastructure gaps by mobilizing ASEAN’s financial resources to deliver projects that promote economic integration and sustainable development.

Founded in 1966, the Asian Development Bank now includes 69 member countries and regions, with 50 of them located within Asia and the Pacific. The institution continues to focus on supporting sustainable, inclusive, and resilient growth through innovative financing, high-quality infrastructure development, and strong regional partnerships.