The ASEAN Power Grid Financing (APGF) Initiative has been launched as a regional strategy to develop an integrated electricity transmission network across Southeast Asia. The project aims to accelerate the adoption of renewable energy and improve the region's energy infrastructure. According to the organizers, achieving the ASEAN Power Grid by 2045 will require about US$800 billion in investments for both generation and transmission.
The APGF brings together governments, utilities, ASEAN institutions, development partners, and investors to address the financial challenges involved in interconnection projects, moving them from initial planning to construction. The initiative is led by ASEAN and the ASEAN Center for Energy, with coordination from the World Bank and Asian Development Bank.
The main goals of the APGF include supporting the deployment and integration of renewable energy technologies, helping ASEAN countries fulfill their climate goals and Nationally Determined Contributions (NDCs). The initiative also aims to enable efficient cross-border electricity trade, which is expected to improve reliability, affordability, and resilience of national power systems. In addition, APGF seeks to attract investments from public, private, and climate finance sources and foster greater regional cooperation by harmonizing policies and technical standards.
Key features of the APGF include developing a pipeline of interconnection projects with high readiness and strategic value, providing technical assistance and capacity building such as feasibility studies and market research, and establishing a centralized regional database for sharing data on renewable energy potential and investment opportunities. The initiative will also help countries access climate finance through carbon markets and green finance mechanisms, including Renewable Energy Certificates (RECs), and promote public-private partnerships with innovative financing models like PPPs. Financing tools such as guarantees, concessional loans, blended finance, and credit enhancements are also part of the effort to de-risk investments and mobilize additional funding.
"The ASEAN Power Grid Financing (APGF) Initiative is a flagship regional effort to create an integrated transmission network towards an accelerated development of renewable energy across Southeast Asia. Achieving the ASEAN Power Grid vision by 2045 will require an estimated US$800 billion in generation and transmission investments. APGF unites governments, utilities, ASEAN institutions, development partners, and investors to bridge the financing gap—transforming interconnection projects ‘from concept to construction’. APGF is led by ASEAN and ASEAN Center for Energy and coordinated by the World Bank and Asian Development Bank."