New fund aims to accelerate development of cross-border power connections across Southeast Asia.
MANILA: The Asian Development Bank (ADB) has launched a multi-partner fund to support essential project preparation for cross-border energy and transmission infrastructure within the Association of Southeast Asian Nations (ASEAN), marking the first fund of its kind in the region.
The Regional Connectivity Fund for Energy in Southeast Asia (RCF) will help drive the development of the ASEAN Power Grid, the bloc’s flagship initiative aimed at achieving fully integrated electricity grid operations by 2045.
Energy security for 700 million people
“The ASEAN Power Grid is one of Southeast Asia’s greatest opportunities, with the potential to provide energy security for nearly 700 million people and support the region’s growth,” said ADB President Masato Kanda.
“Thanks to the strong support of our partners, the launch of this project preparation fund marks a decisive step toward accelerating high-quality ASEAN Power Grid investments and turning regional ambitions into action,” said Masato Kanda.
The RCF is a key initiative under the ASEAN Infrastructure Fund (AIF) — Southeast Asia’s largest regionally owned infrastructure financing platform — and will enable the AIF to expand both its scale and impact.
$25M Initial funding
The fund’s initial financing, totaling approximately $25 million, comes from contributions by the governments of Australia, Canada, Germany, the United Kingdom, and the European Union.
Managed by the Asian Development Bank (ADB) in close collaboration with the AIF Board and ASEAN member states, the RCF will accelerate project preparation by providing technical assistance and project readiness grants for energy infrastructure projects.
Support will cover feasibility studies, engineering design, financial structuring, and safeguards assessments.
The fund will also back activities related to policy guidance, regulatory improvements, capacity building, and knowledge sharing to strengthen the enabling environment for the ASEAN Power Grid.
The RCF will help ensure that projects are well-designed, financially viable, and aligned with the priorities of ASEAN member states.
Southeast Asia’s energy demand is projected 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.
The Asian Development Bank (ADB) has committed up to $10 billion over the next decade to support the ASEAN Power Grid and related initiatives, accelerating cross-border power connections, national grid projects, and renewable energy developments to enable regional energy trading.
In October, the Asian Development Bank (ADB) launched the ASEAN Power Grid Financing Initiative in partnership with the ASEAN Secretariat, the ASEAN Centre for Energy, and the World Bank.
