Connecting the Grid: Why Regional Power Trade Matters for Asia’s Clean Energy Goals

Asia Clean Energy Forum 2025 brought together governments, financiers, and researchers to show that clean energy in Asia is no longer just about climate goals, but about economic growth, energy security, and improving lives. The forum highlighted regional power trade, practical innovation, and fair financing as the keys to scaling clean energy while ensuring resilience and inclusion across the region.

Asia and the Pacific are at the heart of the global energy transition. That reality took center stage at the Asia Clean Energy Forum 2025, held from 2 to 6 June at the Asian Development Bank’s headquarters in Manila. The event brought together more than 1,500 participants from governments, the private sector, research institutions, and civil society. Organized by ADB alongside partners such as the United Nations Economic and Social Commission for Asia and the Pacific, the International Energy Agency, the Economic Research Institute for ASEAN and East Asia, METI Japan, and the Korea Energy Agency, the forum marked its 20th anniversary by sending a clear signal: clean energy is no longer just about climate, it is about development, resilience, and growth.

Beyond Power Plants and Megawatts

From the opening sessions, speakers stressed that the energy transition cannot be measured only in new power plants or falling technology costs. ADB Vice-President Fatima Yasmin highlighted projects that show how clean energy directly improves lives, from solar systems helping Bhutan manage winter power shortages to hydropower upgrades reconnecting Tajikistan to regional grids and wind projects expanding private investment in Vietnam. Across discussions, one message stood out: energy systems must be reliable, affordable, and people-centered, especially in regions where millions still lack secure access to electricity.

Why Regional Power Trade Matters

A major focus of the forum was regional power trade, seen as one of Asia’s most powerful yet underused tools. By sharing electricity across borders, countries can balance renewable energy supply, reduce costs, and improve reliability. Speakers from ADB, UNESCAP, and national governments argued that regional grids can also strengthen energy security and speed up decarbonization. However, progress has been slow. Weak transmission networks, mismatched regulations, and political sensitivities continue to hold countries back. The consensus was clear: cables alone are not enough. Trust, shared rules, and long-term cooperation are just as important.

Innovation Is Not the Same as Impact

Technology featured prominently, but the conversations were realistic rather than celebratory. Solar, wind, batteries, digital grids, and decentralized systems are advancing quickly, offering new solutions for cities, industries, and remote communities. Yet speakers warned that innovation does not automatically lead to impact. Emerging technologies such as green hydrogen, offshore wind, and sustainable aviation fuels remain expensive and risky without clear demand, long-term contracts, and public support. Many participants agreed that the real challenge today is not inventing new solutions, but creating markets that allow clean technologies to scale.

Financing the Transition Fairly

Financing was a thread running through nearly every session. With public budgets under pressure, private investment is essential, but it will not flow easily into high-risk or early-stage projects. Blended finance, guarantees, concessional funding, and transition finance were widely discussed as ways to reduce risk and attract capital. Multilateral development banks, especially ADB, were seen as crucial players, not just for providing money, but for helping countries reform policies, prepare projects, and build investor confidence. Speakers also emphasized that financing must support a just transition, protecting workers and communities affected by the shift away from fossil fuels.

A Wider View of the Energy Transition

The forum also expanded the conversation beyond electricity. Sessions on energy efficiency showed how smarter buildings, industries, and cooling systems can cut costs and emissions quickly, often more cheaply than building new power plants. Discussions on critical minerals highlighted Asia’s key role in supplying materials for clean technologies, while warning about environmental and social risks if mining is poorly managed. Biodiversity-focused sessions challenged the idea that nature slows development, showing instead how healthy ecosystems can protect infrastructure and reduce long-term risks.

As ACEF 2025 drew to a close, the mood was urgent yet hopeful. Asia and the Pacific have the technology, knowledge, and capital to lead the global clean energy transition. Whether they succeed will depend less on innovation alone and more on cooperation between countries, between the public and private sectors, and between energy goals and human development.