The Asian Development Bank (ADB) today announced that it has launched a multi-partner trust fund aimed at accelerating project preparation for cross-border energy infrastructure under the ASEAN Power Grid initiative.

The new Regional Connectivity Fund for Energy in Southeast Asia (RCF) will finance early-stage work for transmission and cross-border power projects, supporting the broader goal of fully integrated electricity grid operations in the region by 2045.

“The ASEAN Power Grid is one of Southeast Asia’s greatest opportunities, with the potential to deliver energy security for nearly 700 million people and power the region’s growth,” said ADB President Masato Kanda. “Thanks to the strong support of our partners, today’s launch of this project preparation fund is a decisive step toward accelerating high-quality ASEAN Power Grid investments and turning regional ambition into action.”

Initial capitalization of the fund stands at about USD 25 million (~PHP 1.5 billion), with contributions from Australia, Canada, the European Union, Germany, and the United Kingdom. The facility is anchored under the ASEAN Infrastructure Fund, which is designed to mobilize regional resources for infrastructure development.

ADB said the fund will support feasibility studies, engineering design, financial structuring, safeguard assessments, as well as policy and regulatory reforms needed to enable cross-border electricity trading.

Southeast Asia’s electricity demand is projected to triple by 2050, intensifying pressure on national grids and increasing the strategic importance of regional power pooling mechanisms like the ASEAN Power Grid.

Beyond the new fund, ADB has committed up to USD 10 billion over the next decade to support ASEAN Power Grid-related investments, including transmission infrastructure and renewable energy development.

ADB added that it is expanding its broader ASEAN engagement, including initiatives on capital market development, AI readiness, blue economy growth, and climate resilience.

What does the acceleration of ASEAN Power Grid financing mean for the Philippines’ own grid modernization and renewable energy integration targets?

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates.