Ecobiz.asia — Asian Development Bank (ADB) has launched a multi-partner trust fund to support project preparation for cross-border energy and transmission infrastructure in Southeast Asia, marking the first initiative of its kind in the region.
The fund, named the Regional Connectivity Fund for Energy in Southeast Asia (RCF), aims to accelerate the development of the ASEAN Power Grid, a flagship program targeting full regional grid integration by 2045.
ADB President Masato Kanda said the fund represents a critical step toward advancing regional energy connectivity.
“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,” Kanda said in a statement on Tuesday (April 7, 2026).
The RCF is established under the ASEAN Infrastructure Fund (AIF) and is expected to strengthen the platform’s capacity to deliver high-impact infrastructure projects.
Initial funding of around US$25 million comes from contributions by Australia, Canada, the European Union, Germany, and the United Kingdom.
Managed by ADB in coordination with AIF and ASEAN member states, the fund will provide technical assistance and grants to support project readiness.
This includes feasibility studies, engineering design, financial structuring, and environmental and social safeguards assessments.
The RCF will also support policy advisory services, regulatory improvements, capacity building, and knowledge sharing to enhance the enabling environment for regional power integration.
Southeast Asia’s energy demand is projected to triple by 2050, underscoring the need for stronger regional connectivity. The ASEAN Power Grid is expected to improve 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 transmission links, national grid upgrades, and renewable energy projects that facilitate regional electricity trade.
The bank previously launched the ASEAN Power Grid Financing Initiative in collaboration with the ASEAN Secretariat, the ASEAN Centre for Energy, and the World Bank to further support implementation of the regional grid. ***
