The United States Agency for International Development (USAID) and the Asian Development Bank (ADB) have agreed to support the energy sector in Asia and the Pacific region.
The new partnership will see efforts directed towards $7bn investment in energy projects in the region. Over the next five years, the efforts will focus on adding 6GW capacity of renewable energy systems and boost regional energy trade by 10%.
The partnership aims to encourage reforms in energy sector, energy efficiency and good governance in the Asia Pacific region. The agreement was signed at the Asia Clean Energy Forum (ACEF) 2019 being held at ADB headquarters in Manila.
Co-hosted by ADB, the USAID, and the Korea Energy Agency, ACEF 2019 seeks to address clean energy challenges faced in the region and accelerate deployment of renewable energy projects.
ADB president Takehiko Nakao said: “A sustainable and secure energy supply remains essential as more than 350 million people still lack access to electricity in our developing member countries (DMCs). It is also a key part of the fight against climate change.
“People around the world are demanding affordable energy, clean air, and a more responsible approach to the environment. ACEF is a leading event in Asia and the Pacific that enables our DMCs and other participants to share their experiences and innovative ways to meet these critical demands.”
ADB committed to $21.6bn in new loans and grants to achieve a ‘prosperous, inclusive, resilient, and sustainable Asia and the Pacific’ in 2018. In November 2018, ADB signed a $227.7m loan deal with Gulf SRC Company to build a 2,500MW combined cycle power plant (CCPP) in Thailand’s Chonburi province.