The Asian Development Bank (ADB) has unveiled a $70bn initiative to strengthen energy and digital infrastructure across Asia and the Pacific by 2035.
The Pan-Asia Power Grid Initiative aims to link national and subregional power systems, facilitating the cross-border flow of renewable energy.
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As part of the Pan-Asia Power Grid Initiative, ADB intends to collaborate with governments, utilities, the private sector, and development partners.
The goal is to raise $50bn by 2035 to develop extensive cross-border power infrastructure, enhancing access to renewable energy.
The initiative is set to prioritise transmission and grid integration, covering cross-border lines, substations, storage, and grid digitalisation.
It also aims to back power generation tied to electricity trade, focusing on renewable energy export projects, regional hubs, and hybrid generation-storage systems.
By 2035, ADB plans to integrate around 20GW of renewable energy across borders and establish 22,000 circuit-kilometres of transmission lines.
It also aims to enhance energy access for 200 million people, create 840,000 jobs, and reduce regional power sector emissions by 15%.
ADB intends to fund about half of the $50bn initiative from its own resources, with the remainder raised through co-financing, including private sector involvement.
Up to $10m in technical assistance will be provided to harmonise regulations, adopt common technical standards, and develop feasibility studies for major projects.
This initiative represents a shift from bilateral energy connections to a regional power trade approach.
This builds on existing subregional cooperation programmes such as the South Asia Subregional Economic Cooperation, the Bay of Bengal Initiative, the ASEAN Power Grid, and the Central Asia Regional Economic Cooperation Energy Strategy 2030.
ADB president Masato Kanda said: “Energy and digital access will define the region’s future. These two initiatives build the systems Asia and the Pacific need to grow, compete, and connect.
“By linking power grids and digital networks across borders, we can lower costs, expand opportunity, and bring reliable power and digital access to hundreds of millions of people.”
Meanwhile, the Asia-Pacific Digital Highway aims to bridge the digital infrastructure divide and support AI-driven growth by raising $20bn by 2035 for digital corridors, data infrastructure, and AI-ready economies.
Investments will emphasise fibre networks, satellite links, and regional data centres.
The initiative aims to deliver broadband access to 200 million people for the first time and improve digital connectivity for another 450 million. It is expected to cut connectivity costs in remote areas by 40% and create four million jobs.
In November last year, ADB approved a $470m results-based loan to Indonesia’s state electricity company, PT Perusahaan Listrik Negara (PLN), to accelerate the nation’s clean energy transition programme.
