Financing challenges plague $800B ASEAN power grid project

Financing remains the primary challenge for the ambitious $800-million ASEAN power grid project, according to the Department of Energy.

Energy Secretary Sharon S. Garin highlighted the need for innovative financing models and blended mechanisms involving public, private, and multilateral support to fund the cross-border projects.

The ASEAN, Asian Development Bank, and World Bank have initiated a new financing effort for the grid, which aims to link the electricity networks of member nations for cross-border power trading by 2045.

The project is estimated to require $800 billion for generation and transmission investments, according to the World Bank Group.

Secretary Garin emphasized that the interconnected system is crucial for a cleaner, resilient, and sustainable energy future, with equitable sharing of progress and prosperity across member states.

She also stated that the private sector will be an indispensable partner in this initiative, with governments providing the necessary direction.

The Philippines has expressed its readiness to contribute, referencing its successful interconnection of the Mindanao-Visayas transmission grid.