Manila: The Association of Southeast Asian Nations (ASEAN) and the Asian Development Bank (ADB) are mobilizing USD25 million worth of financing to accelerate ASEAN Power Grid investments and support access to reliable power supply in the region.

According to Philippines News Agency, the Regional Connectivity Fund (RCF) for Energy under the ASEAN Infrastructure Fund (AIF) was formally launched during the 2026 ASEAN Finance Deputies' Meeting (AFDM) on April 7. With an initial funding of USD25 million from Australia, Canada, the European Union, Germany, and the United Kingdom, the RCF will finance grants and provide technical assistance to develop cross-border energy projects across the region.

This initiative includes feasibility studies, engineering design, financial structuring, and safeguards assessments. It will also fund activities related to policy advice, regulatory improvements, capacity building, and knowledge sharing to improve the enabling environment for the ASEAN Power Grid. The ASEAN Power Grid is the regional bloc's flagship initiative to achieve fully integrated electricity grid operations by 2045.

At the AFDM, ASEAN senior finance officials emphasized the alignment of priorities and protection of public resources amid tightening fiscal space and rising global uncertainty. Discussions focused on strengthening public financial management, mobilizing investments, and keeping fiscal policies responsive to evolving challenges, ranging from energy market volatility to supply chain disruptions.

The meeting also endorsed the ASEAN Climate Finance Policy Platform, an initiative launched by ADB in 2024 to enhance exchanges on climate change among ASEAN finance ministries.