The Asian Development Bank (ADB) has announced the launch of a $70 billion program aimed at developing energy and digital infrastructure throughout Asia and the Pacific by the year 2035. This program will comprise three components: cross-border electricity networks, renewable energy integration, and broadband connectivity.

As part of the programme, ADB will be investing $50 billion into what they call the Pan-Asia Power Grid Initiative – an effort to connect national and subregional power systems to create a framework for cross-border electricity trading and support the transmission of renewable energy.

In addition to the $50 billion for electrical infrastructure, ADB has allocated $20 billion for digital infrastructure projects that will include projects such as fibre optic networks, satellite connectivity, and regional data centers.

According to ADB, this program will focus on transmission infrastructure, grid integration, storage systems, and digitalization to provide increased reliability of electricity and help with the deployment of renewable energy. ADB also believes that improved regional grid interconnections will allow countries to manage their electricity supplies in a more efficient manner, reduce their costs of transmission services, and lessen their reliance on fossil fuels.

The ADB anticipates that by 2035, the initiative will result in the addition of approximately 20 gigawatts of renewable energy being integrated across borders and approximately 22,000 circuit-kilometres of transmission lines being constructed throughout the region. In terms of improving access to electricity for approximately 200 million people, this program will also accomplish that goal.

The announcement was made at the annual meeting of the bank in Samarkand, Uzbekistan, where regional energy security and infrastructure financing were two of the primary topics discussed. According to Masato Kanda, president of ADB, energy and digital connectivity will continue to play a strong role in driving economic activity and industrial growth in the region.

The programme is expected to involve relationships with governments, utilities, private sector companies, and multilateral finance institutions to create partnerships. According to ADB, investment will be made in renewable energy export projects, hybrid generation and storage systems, and regional power hubs that connect to electrical trade networks.

Researchers and energy experts have identified cross-border grid interconnections as a significant factor that can help to substantially increase the use of renewable energy in Asia and to transition away from coal and to develop the electrical infrastructure more equitably. Many countries in the Asia region face challenges associated with aging electrical grids, inadequate transmission capacity, and increasing demand for electricity caused by urbanization and industrialization.

ADB also stated that the initiative could help reduce greenhouse gas emissions from the regional power sector by nearly 15% while creating significant employment opportunities linked to infrastructure construction and energy system development. The bank estimates the programme could generate approximately 840,000 jobs by 2035.

ADB said investments in digital infrastructure through the programme will facilitate broadband deployment, AI-readiness infrastructure, and regional data connectivity in an effort to bridge digital divides in Asia and the Pacific region.