The Asian Development Bank has unveiled a new multi-partner fund with an initial commitment of USD25 million to support the development of the ASEAN Power Grid.
The fund is designed to de-risk cross-border electricity projects and accelerate long-delayed efforts to integrate power systems across Southeast Asia. By reducing financial and technical barriers, the initiative aims to attract private investment and enable large-scale regional energy trading.
The ASEAN Power Grid seeks to connect national electricity networks, allowing countries to share power resources more efficiently, improve energy security, and support the transition to renewable energy. Projects such as the Lao PDR–Thailand–Malaysia–Singapore Power Integration Project have already demonstrated the feasibility of multilateral electricity trade in the region.
ADB’s funding will focus on early-stage project development, feasibility studies, and risk mitigation mechanisms, helping to unlock financing for complex cross-border infrastructure.
