KPL
The Asian Development Bank (ADB) has launched a new multi-partner trust fund to finance critical project preparation for cross-border energy and transmission infrastructure across the Association of Southeast Asian Nations (ASEAN), marking the first initiative of its kind in the region.
The Regional Connectivity Fund for Energy in Southeast Asia (RCF) aims to accelerate the development of the ASEAN Power Grid, the bloc’s flagship initiative to achieve a fully integrated regional electricity grid 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. “With the strong support of our partners, the launch of this project preparation fund marks a decisive step towards accelerating high-quality investments and turning regional ambition into action.”
The RCF is a key initiative under the ASEAN Infrastructure Fund (AIF), Southeast Asia’s largest regionally owned infrastructure financing platform, and is expected to strengthen the fund’s scale and impact. Initial funding of approximately US$25 million has been provided by the governments of Australia, Canada, Germany, and the United Kingdom, along with the European Union.
Managed by 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 include feasibility studies, engineering design, financial structuring, and environmental and social safeguards assessments, alongside policy advice, regulatory improvements, capacity building, and knowledge sharing to strengthen the enabling environment for the ASEAN Power Grid.
Southeast Asia’s energy demand is projected to triple by 2050, making regional power integration increasingly important. The ASEAN Power Grid is expected to expand access to reliable and affordable electricity, including renewable energy sources such as solar, wind, and hydropower.
ADB has pledged up to US$10 billion over the next decade to support the ASEAN Power Grid and related investments, including cross-border power connections, national grid development, and renewable energy projects to facilitate regional electricity trading. In October, ADB also launched the ASEAN Power Grid Financing Initiative in partnership with the ASEAN Secretariat, the ASEAN Centre for Energy, and the World Bank.
Last month, ADB reaffirmed its commitment to strengthening support for ASEAN as a key development partner, while also advancing regional initiatives in capital market development, artificial intelligence readiness, the blue economy, and river basin resilience.
Established in 2011 by ASEAN member states and ADB, the ASEAN Infrastructure Fund was created to help bridge the region’s infrastructure investment gap by mobilising regional resources for high-priority projects that promote economic integration and sustainable development.
ADB, founded in 1966 and owned by 69 members—50 from the Asia and Pacific region—is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across the region.
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