The Asian Development Bank (ADB) has launched the Regional Connectivity Fund for Energy in Southeast Asia (RCF), a multi-partner fund designed to finance project preparation for cross-border energy and transmission infrastructure within ASEAN. This fund is the first of its kind in the region and aims to accelerate the development of the ASEAN Power Grid, which seeks fully integrated electricity operations across Southeast Asia by 2045.
ADB President Masato Kanda highlighted that the ASEAN Power Grid represents a major opportunity to provide energy security for nearly 700 million people and support regional economic growth. The RCF will help translate this regional ambition into actionable investments by funding project preparation activities and technical assistance.
The fund, delivered under the ASEAN Infrastructure Fund (AIF), initially mobilizes about $25 million from contributors including Australia, Canada, the European Union, Germany, and the United Kingdom. Managed by ADB with close coordination with ASEAN member states and the AIF Board, RCF grants will support feasibility studies, engineering design, financial structuring, safeguards assessments, policy advice, regulatory improvements, capacity building, and knowledge sharing to ensure projects are bankable and aligned with member priorities.
With Southeast Asia’s energy demand expected to triple by 2050, the ASEAN Power Grid is crucial for expanding access to reliable and affordable power, including renewable sources such as solar, wind, and hydropower. ADB has committed up to $10 billion over the next decade to support cross-border power connections, national grid projects, and renewable energy initiatives to facilitate energy trading.
The RCF builds on ADB’s broader support for ASEAN, which includes initiatives to deepen regional capital markets, strengthen AI readiness, develop the blue economy, and enhance river basin resilience. Established in 2011, the AIF mobilizes ASEAN’s own resources to close the region’s infrastructure investment gap and promote sustainable economic integration.
ADB, founded in 1966 and owned by 69 members, is a leading multilateral development bank dedicated to fostering sustainable, inclusive, and resilient growth across Asia and the Pacific. Through strategic partnerships and innovative financial tools, ADB supports high-quality infrastructure, transforms lives, and safeguards the environment.
