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.