The ASEAN Power Grid Financing (APGF) Initiative is a major regional program designed to develop an integrated transmission network and accelerate the deployment of renewable energy across Southeast Asia. Achieving the ASEAN Power Grid vision by 2045 will require around US$800 billion in investments in both generation and transmission infrastructure. APGF brings together governments, utilities, ASEAN institutions, development partners, and investors to bridge the financing gap and transform interconnection projects from planning stages to construction. The initiative is led by ASEAN and the ASEAN Center for Energy and coordinated by the World Bank and Asian Development Bank.
The initiative aims to accelerate renewable energy scale-up by supporting the deployment and grid integration of clean energy technologies, helping ASEAN countries meet their climate commitments and Nationally Determined Contributions. It also facilitates regional power trade by enabling efficient cross-border electricity flows, improving the reliability, affordability, and resilience of national power systems. Additionally, APGF mobilizes investment from public, private, and climate finance sources and strengthens regional cooperation by harmonizing policies, technical standards, and building consensus among stakeholders.
Key features of APGF include the development of a robust project pipeline, prioritizing interconnection projects with high readiness and strategic impact. The initiative also provides technical assistance and capacity building, offering grants and support for feasibility studies, market research, and institutional strengthening, including environmental and social risk management. A centralized regional energy database will enable the sharing of information on renewable energy potential, investment opportunities, and environmental and social impacts.
APGF helps countries access climate finance by supporting carbon market participation and green financing mechanisms, including the development of Renewable Energy Certificates. The program also promotes innovative public-private partnership models and leverages tailored financing instruments such as guarantees, concessional loans, blended finance, and credit enhancements to de-risk investments and attract private capital for regional energy integration.
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