ADB to mobilise $ 50 b to turn regional connectivity into action as the multilateral lender accelerates efforts to strengthen energy integration and infrastructure development across Asia and the Pacific. The ambitious financing initiative aims to support cross-border electricity networks, renewable energy expansion and long-term regional resilience.
ADB to mobilise $ 50 b to drive regional connectivity and power trade
The announcement was made by Masato Kanda during the Governors’ Seminar on the Pan-Asia Power Grid Initiative (PAGI), held alongside the 59th Annual Meeting of the Asian Development Bank.
Kanda said the ADB plans to mobilise $50 billion by 2035 through a combination of new financing mechanisms, policy support frameworks and strategic partnerships designed to help countries establish interconnected power systems across some of the world’s most complex regions.
“The $50 billion Pan-Asia Power Grid Initiative is about building the infrastructure required for a more connected, resilient, and prosperous Asia and the Pacific,” Kanda said during the seminar. He stressed that countries maintaining strong regional connectivity are better positioned to attract investment, withstand economic shocks and enhance long-term growth prospects.
The newly launched Pan-Asia Power Grid Initiative is expected to become one of the ADB’s flagship regional infrastructure platforms. The initiative is designed to accelerate renewable energy integration, improve energy security and lower electricity costs through expanded regional power trade.
Under the initiative, the ADB aims to integrate approximately 20 gigawatts of renewable energy into regional grids while connecting around 22,000 circuit-kilometres of transmission infrastructure by 2035. The project is also expected to improve energy access for nearly 200 million people across Asia and the Pacific and generate an estimated 840,000 jobs.
The move reflects growing regional demand for integrated energy systems capable of supporting the transition toward cleaner and more reliable power generation. Many countries across Asia are facing increasing pressure to strengthen electricity infrastructure amid rising energy demand, climate-related disruptions and the need to accelerate renewable energy adoption.
Kanda noted that the ADB’s approach goes beyond financing standalone infrastructure projects. Instead, the institution is increasingly focusing on building interconnected regional systems that support economic growth, resilience and energy security over the long term.
The bank is also leveraging its convening power to bring together governments, regulators, utility providers, development partners and private sector investors to address policy gaps and regulatory challenges that often delay large-scale infrastructure projects. According to the ADB, coordination among multiple stakeholders remains essential to ensuring the successful implementation of regional energy integration projects.
The initiative places strong emphasis on expanding cross-border power trade, which experts say can help countries reduce electricity costs while improving grid stability and energy reliability. Regional power sharing arrangements also enable countries to make more efficient use of renewable energy resources, particularly solar, hydro and wind power generated across different geographic areas.
The ADB highlighted its previous support for complex regional energy projects, including the Bangladesh–India grid interconnection and the Monsoon Wind Power Project in the Lao People’s Democratic Republic. These projects demonstrated how blended financing structures and regional partnerships can mobilise private capital for large-scale energy infrastructure.
To further accelerate grid connectivity in Southeast Asia, the bank has launched a dedicated Regional Connectivity Fund supported by Australia, Canada, Germany, the United Kingdom and the European Union. The fund is expected to help de-risk early-stage projects, support technical preparation and attract additional public and private investment into regional infrastructure initiatives.
Development economists say the latest initiative could significantly reshape Asia’s energy landscape over the next decade by encouraging deeper regional integration and reducing dependence on isolated national energy systems. Increased connectivity may also support industrial growth, digital infrastructure expansion and broader economic cooperation across emerging Asian economies.
For countries such as Sri Lanka and other developing economies in the region, enhanced regional energy connectivity could create new opportunities for renewable energy investment, energy security and long-term infrastructure development partnerships.
The ADB’s latest commitment underscores the growing importance of collaborative regional infrastructure strategies as countries seek sustainable pathways for economic recovery, climate resilience and energy transition.