The Asian Development Bank (ADB) has launched the Pan-Asia Power Grid Initiative (PAGI), committing USD 50 billion by 2035 to develop cross-border power grids, aiming to lower energy costs and expand clean energy trade across the region.
The Asian Development Bank (ADB) is mobilizing USD 50 billion by 2035 to transform regional connectivity into action through the development of cross-border power grids. The financial commitment aims to lower energy costs, strengthen reliability, and expand clean energy trade across some of the world's most complex regions.
ADB Launches Pan-Asia Power Grid Initiative
According to ADB, the initiative seeks to address the growing energy needs of Asia and the Pacific by leveraging new financing tools, policy support, and strategic partnerships. ADB President Masato Kanda announced the Pan-Asia Power Grid Initiative (PAGI) during the Governors' Seminar at the bank's 59th Annual Meeting. He underscored the bank's transition beyond supporting standalone projects toward the creation of integrated regional systems.
As per ADB, these systems are designed to provide the necessary foundation for economic growth, resilience, and energy security. The flagship platform, which launched on Sunday, focuses on accelerating cross-border power trade and integrating renewable energy at a massive scale. "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, adding, "Countries that stay connected attract investment and weather shocks better than those that turn inward. Connectivity is our answer to fragmentation."
Key Targets for 2035
Through the PAGI framework, the bank set specific targets for the next decade. The initiative aims to integrate approximately 20 gigawatts of renewable energy and connect 22,000 circuit-kilometres of transmission lines by 2035. The bank expects these developments to improve energy access for 200 million people and generate 840,000 jobs across the region.
Strategy and Support Mechanisms
To facilitate these large-scale interconnections, ADB is leveraging its convening power to bring together governments, regulators, utilities, the private sector, and development partners to align policies, sequence investments, and resolve regulatory barriers that often delay regional infrastructure.
The bank previously supported several pioneering cross-border projects, such as the Bangladesh-India grid interconnection and the Monsoon Wind Power Project in the Lao People's Democratic Republic.
Regional Connectivity Fund
"To accelerate grid interconnections in Southeast Asia, ADB has launched a dedicated Regional Connectivity Fund which is supported by Australia, Canada, Germany, the United Kingdom, and the European Union. The fund helps de risk early stage projects, finance preparation, and crowd in larger pools of public and private capital," the Bank said. (ANI)
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