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.
Objectives
- Accelerate Renewable Energy Scale-Up: Support the deployment and grid integration of RE technologies, helping ASEAN countries meet their climate commitments and Nationally Determined Contributions (NDCs).
- Facilitate Regional Power Trade: Enable efficient cross-border electricity flows, improving reliability, affordability, and resilience of national power systems.
- Mobilize Financing: Crowd in investment from diverse sources, including public, private, and climate finance.
- Strengthen Regional Cooperation: Build consensus among governments, utilities, and investors, and harmonize policies and technical standards for regional integration.
Key Features
- Project Pipeline Development: Support ACE in preparing a pipeline of bankable interconnection projects, prioritizing those with high readiness and strategic impact.
- Technical Assistance & Capacity Building: Provide grants and technical support for feasibility studies, market research, and institutional strengthening, including environmental and social risk management.
- Centralized Energy Database: Establish a regional platform for sharing data on RE potential, investment opportunities, and environmental/social impacts.
- Climate Finance Access: Assist countries in tapping into carbon markets and green finance mechanisms, including the development of Renewable Energy Certificates (RECs).
- Public-Private Partnerships: Promote innovative financing models, including PPPs.
- Financing & De-risking: Solicit tailored instruments such as guarantees, concessional loans, blended finance, and credit enhancements.