ADB's $50 Billion Initiative to Transform Asian Energy Connectivity by 2035

The Asian Development Bank (ADB) pledges $50 billion to develop cross-border power grids by 2035, aiming to lower energy costs and boost clean energy trade in Asia and the Pacific. The initiative, called the Pan-Asia Power Grid Initiative (PAGI), targets integrating significant renewable energy and enhancing regional energy security.

The Asian Development Bank (ADB) has announced a plan to mobilize USD 50 billion by 2035, aiming to revolutionize regional energy connectivity through the establishment of cross-border power grids. This initiative seeks to reduce energy costs, enhance reliability, and promote clean energy trade across Asia’s complex regions.

ADB President Masato Kanda unveiled the Pan-Asia Power Grid Initiative (PAGI) during the bank's 59th Annual Meeting, highlighting a strategic shift towards creating integrated regional systems rather than just standalone projects. This move is anticipated to lay the groundwork for economic growth, resilience, and energy security.

Expected to build enormous infrastructure for a connected and prosperous Asia, the $50 billion PAGI aims to integrate 20 gigawatts of renewable energy and connect 22,000 kilometers of transmission lines by 2035. This initiative is projected to enhance energy access for 200 million people and create 840,000 jobs.

The ADB is using its influence to unite governments, regulators, utilities, and development partners to streamline policies and investments, resolving regulatory challenges that hinder regional infrastructure projects. Notable past ADB-backed projects include the Bangladesh-India grid interconnection and the Monsoon Wind Power Project.

The organization has also launched a Regional Connectivity Fund, supported by international partners, to mitigate risks and finance preparatory stages, attracting larger public and private investments.