BAKU, Azerbaijan, April 7. The Asian Development Bank (ADB) has unveiled a new multi-partner financing mechanism aimed at supporting the preparation of cross-border energy and transmission infrastructure projects across the Association of Southeast Asian Nations (ASEAN). The initiative marks the first fund of its kind in the region, Trend reports via the Bank.
The newly established Regional Connectivity Fund for Energy in Southeast Asia (RCF) is designed to fast-track the development of the ASEAN Power Grid—one of the bloc’s flagship initiatives to achieve a fully integrated regional electricity network by 2045.
“The ASEAN Power Grid represents a major opportunity for Southeast Asia, with the potential to strengthen energy security for nearly 700 million people and underpin long-term economic growth,” said Masato Kanda. He added that the launch of the fund, backed by strong partner support, marks a significant step toward accelerating investment and translating regional ambitions into concrete outcomes.
The RCF operates under the ASEAN Infrastructure Fund (AIF), the region’s largest infrastructure financing platform, and is expected to enhance its reach and effectiveness. Initial contributions totaling approximately $25 million have been provided by Australia, Canada, the European Union, Germany, and the United Kingdom.
Administered by ADB in close coordination with the AIF Board and ASEAN member states, the fund will provide technical assistance and grants to support project readiness. This includes financing for feasibility studies, engineering design, financial structuring, and environmental and social safeguards. In addition, the RCF will support policy advisory services, regulatory reforms, capacity building, and knowledge sharing to strengthen the enabling environment for energy connectivity.
The initiative comes amid projections that Southeast Asia’s energy demand will triple by 2050. The ASEAN Power Grid is expected to play a critical role in ensuring access to reliable, affordable, and cleaner energy sources, including solar, wind, and hydropower.
ADB has committed up to $10 billion over the next decade to support the ASEAN Power Grid and related investments, including cross-border interconnections, national grid enhancements, and renewable energy projects that facilitate regional power trade. In October, the bank launched the ASEAN Power Grid Financing Initiative in partnership with the ASEAN Secretariat, the ASEAN Centre for Energy, and the World Bank.