ADB, WB pledge over $12 bln for ASEAN power grid, renewable energy projects

The ASEAN Power Grid Financing Initiative (APGF) gained fresh momentum after the Asian Development Bank (ADB) and the World Bank (WB) pledged over $12 billion to accelerate regional electricity connectivity and renewable energy development.

The commitment was recently announced at the virtual Ministerial Interface Meeting on Financial Mechanisms for the ASEAN Power Grid (APG). Representatives from all 10 ASEAN members and Timor-Leste attended, with Vietnam’s delegation led by Deputy Minister of Industry and Trade Nguyen Hoang Long.

The APGF is designed to provide financial backing for the ASEAN Power Grid (APG), a flagship initiative under the upcoming ASEAN Plan of Action for Energy Cooperation 2026-2030. The APG aims to interconnect national grids to improve energy security, diversify supply sources, optimise resource use, and foster cross-border electricity trade in the region.

At the meeting, the ministers of economy and energy, and central bank governors discussed inter-sectoral coordination, reviewed the APGF implementation plan presented by ADB and WB, explored ways each sector could contribute to financing and advancing regional energy connectivity, and considered steps to attract global capital for the APG.

The meeting welcomed ADB’s readiness to invest up to $10 billion of its own resources over the next decade in support of the APG, including crossborder interconnections, and other APG-related investments (domestic grid strengthening and renewable energy for power export).

It also welcomed investment from the WB through its $2.5 billion "Accelerating Sustainable EnergyTransition Multi-Phase Programmatic Approach (ASET-MPA)" program, approved in 2024 to ramp up renewable energy and promote power trade across the region.

Deputy Minister Long stressed that Vietnam will continue to explore proposals, exchange information, and seek cooperation opportunities aligned with its development priorities to advance cross-border power connectivity.

The meeting concluded with a joint press statement affirming APG’s role in enhancing economic competitiveness, driving sustainable industrial growth, and strengthening energy security.