ADB’s $50b grid plan links energy systems across Asia

Electricity networks across multiple countries are being tied into shared transmission corridors.

The Asian Development Bank (ADB) will co-finance a $50b programme under its Pan-Asia Power Grid Initiative to integrate national electricity systems and expand cross-border power trade across Asia and the Pacific.

About half of the funding will come from ADB’s own resources, with the remainder provided by governments, utilities, the private sector, and development partners, the bank said in a press release.

The initiative will focus on transmission infrastructure and grid integration, including cross-border power lines, substations, storage systems, and grid digitalisation.

It will also support generation projects linked to electricity trade, including renewable energy export schemes, regional renewable hubs, and hybrid generation-storage facilities.

ADB said it aims to integrate about 20 gigawatts of renewable energy across borders by 2035, build 22,000 circuit-kilometres of transmission lines, expand energy access for 200 million people, and create 840,000 jobs.

It also targets a 15% reduction in regional power sector emissions.

The bank will allocate up to $10m for technical assistance to support regulatory alignment, technical standards, feasibility studies, and project preparation.

The programme builds on existing regional frameworks, including the ASEAN Power Grid, the South Asia Subregional Economic Cooperation programme, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, and the Central Asia Regional Economic Cooperation Energy Strategy 2030.

The power grid initiative forms part of a wider $70b package that also includes the Asia-Pacific Digital Highway, which will mobilise $20b by 2035 for digital infrastructure and connectivity systems.

ADB expects to finance $15b of the digital programme, with $5b raised through co-financing, including private sector investment.

The initiative will support fibre-optic networks, subsea cables, satellite links, and regional data centres.

It will also include policy support for cybersecurity risk management and skills development in digital and artificial intelligence (AI) capacity.

The programme targets first-time broadband access for 200 million people, improved connectivity for 450 million people, a reduction of connectivity costs in remote and landlocked areas of about 40%, and the creation of four million jobs.

ADB will establish a Centre for Artificial Intelligence Innovation and Development in Seoul with a $20m contribution from the Government of the Republic of Korea to support AI adoption and train about three million people in digital and AI-related skills by 2035.