JAKARTA - ASEAN and the Asian Development Bank (ADB) launched a regional energy fund worth US$25 million to accelerate inter-country electricity projects in Southeast Asia. This fund is prepared to support the ASEAN Power Grid, an integrated electricity network between ASEAN countries that is targeted to be fully connected by 2045.
Quoted from the Philippine News Agency (PNA), Thursday, April 9, the fund is called the Regional Connectivity Fund for Energy, or a fund to support cross-country energy projects. This fund is under the ASEAN Infrastructure Fund, which is an ASEAN infrastructure development fund. The launch was carried out at the ASEAN Finance Deputies' Meeting 2026 on April 7.
The initial funding of US$ 25 million comes from Australia, Canada, the European Union, Germany, and the United Kingdom. This fund will be used for funding assistance and supporting cross-border energy projects in the region.
The scope includes preliminary studies to assess project feasibility, technical design, preparation of funding patterns, and assessment of social and environmental impacts. This fund will also be used to support rule improvements, policy input, increased readiness of implementing agencies, and knowledge exchange so that ASEAN electricity grid projects are more ready to run.
According to the PNA report, the ASEAN Power Grid is the region's main initiative to build a mutually connected electricity network by 2045. The goal is to strengthen the electricity connection between countries so that the electricity supply in Southeast Asia is more reliable.
During the same meeting, senior ASEAN finance officials also discussed the need to align priorities and preserve public resources amid increasingly limited budgetary capacity and increased global uncertainty.
The discussion focused on strengthening the management of state finances, attracting investment, and maintaining budget policies that remain responsive to new challenges, ranging from energy market turmoil to supply chain disruptions.
AFDM also approved the ASEAN Climate Finance Policy Platform, a forum to strengthen discussions on climate financing among the finance ministries of ASEAN countries.
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