The Asian Development Bank (ADB) is preparing to extend significant financing support—estimated at up to USD 1 billion—to help modernize and strengthen the country’s national grid.

“We are looking at strengthening your national grid. As you know, the grid has not been strengthened in recent times adequately, particularly to absorb renewable energy from offshore wind and so on,” said Priyantha Wijayatunga, Senior Director of ADB’s Energy Sector Office, Sectors Department 1.

According to Wijayatunga, the proposal is still under discussion since the National Grid Corporation of the Philippines (NGCP) operates the system privately. This means ADB would need to coordinate closely with the Department of Energy (DOE) to determine how to channel funding effectively.

“It will have to be through DOE if we are talking of sovereign financing because obviously sovereign financing cannot go into the private sector. But it can be both sovereign and non-sovereign,” Wijayatunga told reporters at the sidelines of the Singapore International Energy Week (SIEW).

“It’s in the pipeline, but I don’t know how long it will take. It all depends on, as I said, the grid operator is not the government. So there may have to be certain contractual kind of discussions between the grid operator and the government to do that. So in a way, it might take a while, but it’s necessary.”

Grid upgrades key to offshore wind integration

The ADB official stressed that modernizing transmission infrastructure is vital for the Philippines to unlock its vast offshore wind potential and achieve long-term energy security.

“If you want to bring offshore wind into the grid, you need grid investments. That’s where we are looking at,” Wijayatunga noted.

The Philippines is among the most promising countries in Asia for renewable growth, but its aging transmission backbone and limited inter-island connectivity remain barriers to new capacity additions. Strengthening the grid will ensure that clean power generated from remote wind, hydro, and solar sites can reach high-demand urban centers efficiently.

ADB committed to support PH energy transition

ADB’s grid financing initiative forms part of its broader strategy to help developing member countries accelerate clean energy deployment and improve power reliability.

Wijayatunga reiterated that the bank has sufficient financial capacity following its revised Capital Adequacy Framework, which allows an additional USD 10 billion per year in new lending.

“We have money, and we are ready to support. But projects have to be ready for financing,” he said, emphasizing the importance of project readiness, including feasibility studies and environmental safeguards, before funds are released.

ASEAN grid integration gains momentum

Beyond the Philippines, ADB is also helping drive regional energy cooperation. Together with the Association of Southeast Asian Nations (ASEAN) and the World Bank Group, the bank recently launched a new financing platform to accelerate the ASEAN Power Grid (APG)—a decades-long plan to interconnect the region’s electricity networks and boost cross-border energy trade.

Unveiled on October 15 in Kuala Lumpur during the 42nd ASEAN Ministers on Energy Meeting, the initiative aims to create a pipeline of bankable APG projects and enable national utilities and private developers to tap into a shared pool of financiers.

Under the agreement, ADB pledged up to USD 10 billion over the next decade, while the World Bank committed USD 2.5 billion to help prepare and structure viable projects.

Regional demand is expected to nearly double by 2040, driven by industrial growth and rising populations. By improving interconnections, ASEAN hopes to share resources, balance supply, and strengthen the region’s overall energy security—a goal that aligns with ADB’s push to modernize grids, starting with countries like the Philippines.

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