FINANCIAL CHRONICLE — As the Asia-Pacific region faces one of its most significant energy challenges in decades, collaboration among countries is essential to establish a cleaner and more resilient power system capable of facilitating cross-border electricity trade, emphasized Masato Kanda, President of the Asian Development Bank (ADB).
During his opening remarks at the Asia Clean Energy Forum (ACEF) 2026, held at ADB Headquarters in Manila, Kanda remarked, “Recent events have unequivocally shown that energy security cannot be achieved in isolation by any nation.” He stressed the necessity of developing a power infrastructure that links economies, enhances resilience, and ensures energy delivery throughout the region. “Procrastination will lead to increased costs, diminished economic growth, and missed opportunities for millions,” he added.
According to ADB, over 350 million individuals in the Asia-Pacific region currently experience limited energy access, while more than 53 million lack access entirely. The ongoing conflict in West Asia has further highlighted the energy vulnerabilities faced by numerous countries.
Energy demand in the region is anticipated to nearly double by 2030, driven by continuous economic expansion, rapid urbanization, and escalating requirements from power-intensive artificial intelligence data centers, as reported by the global financial institution.
In response to these challenges, ADB is advancing the Pan-Asia Power Grid Initiative (PAGI), aimed at integrating national and regional energy systems to facilitate cross-border energy flows. This initiative marks a shift from isolated, small-scale projects to a coordinated regional energy trading framework.
By the year 2035, PAGI is expected to mobilize $50 billion, with ADB contributing half of this amount. The initiative aims to establish 22,000 circuit-kilometers of transmission lines, incorporate 20 gigawatts of renewable energy into the regional grid, reduce emissions in the power sector by 15%, and create approximately 840,000 jobs.
