The Asian Development Bank (ADB) has unveiled plans to mobilize up to US$50 billion by 2035 to support the development of a vast cross-border electricity network across Asia and the Pacific, in a push to lower power costs, improve energy reliability, and expand renewable energy trade.
The initiative, called the Pan-Asia Power Grid Initiative (PAGI), was announced during ADB’s 59th Annual Meeting and is being positioned as a long-term effort to link national power systems into a more integrated regional grid.
ADB President Masato Kanda said the project is aimed at building infrastructure that can support a more connected and resilient regional economy, noting that stronger energy links can help countries withstand shocks while attracting investment.
According to ADB, the initiative is designed to move beyond isolated national energy projects and instead develop shared systems that allow electricity, particularly from renewable sources, to be traded across borders more efficiently.
Under PAGI, the bank targets the integration of around 20 gigawatts of renewable energy capacity, the construction of approximately 22,000 circuit-kilometers of transmission lines, improved electricity access for 200 million people, and the creation of about 840,000 jobs by 2035.
The plan also seeks to address one of the region’s long-standing challenges: regulatory and political barriers that have slowed cross-border energy cooperation despite growing demand for cleaner and more stable power supply.
To support implementation, ADB said it will work with governments, regulators, utilities, private investors, and development partners to coordinate policies and align infrastructure investments across participating countries.
The bank has previously backed regional energy projects, including the Bangladesh–India power grid connection and the Monsoon Wind Power Project in the Lao People’s Democratic Republic, using blended financing tools to attract private sector participation.
As part of the new initiative, ADB has also launched a Regional Connectivity Fund to help accelerate early-stage development of grid projects in Southeast Asia. Supported by partners including Australia, Canada, Germany, the United Kingdom, and the European Union, the fund is intended to reduce risks for initial investments, finance project preparation, and encourage larger flows of public and private capital.
ADB officials said the broader goal of the initiative is to strengthen energy security in the region while advancing the transition to cleaner power systems through greater regional cooperation.