ADB Pan-Asia Power Grid to Link 200 Million Consumers

Tashkent, Uzbekistan (UzDaily.com) — The Asian Development Bank (ADB) announced in Samarkand a large-scale initiative called the Pan-Asia Power Grid, valued at $50 billion, aimed at building an integrated energy infrastructure across the Asia-Pacific region.

The project envisions the construction of 22,000 kilometers of new power transmission lines and an expansion of renewable energy capacity by 20 gigawatts by 2035. It is expected to provide electricity access to 200 million people.

ADB Senior Director for Energy Priyantha Wijayatunga outlined three key drivers behind the urgency of the program. He said the current energy crisis has underscored the importance of energy security in a region that has been among the most affected. Rapid growth in electricity demand driven by artificial intelligence development and data centers requires a swift expansion of generation capacity. He also noted that countries’ long-term climate commitments necessitate a shift to clean energy sources, while grid interconnection improves efficiency through geographic diversification of renewable resources.

Kulan Bat-Erdene, Mongolia’s Deputy Finance Minister, said Asia’s electricity demand has historically been driven by industrialization and urbanization, but the rapid expansion of artificial intelligence, data centers and cooling systems has pushed it to a new level. She cited research suggesting regional energy consumption could double or triple in the coming years.

She added that most renewable energy potential is concentrated in northeast Asia, including wind energy in the Gobi Desert, solar generation in Central Asia and hydropower in Siberia, while major consumption centers are located in southern and coastal cities.

ACWA Power Central Asia President Abid Malik said the company has developed a portfolio exceeding 100 gigawatts across 15 countries since its founding in 2005, 21 years ago.

He said the Saudi energy company is the world’s largest producer of desalinated water and is developing a major green hydrogen project in NEOM. Malik noted that thermal power plants were traditionally built near consumption centers, while renewable energy is geographically dispersed, making transmission infrastructure essential.

In Uzbekistan, ACWA Power is developing projects with a total capacity of around 12 gigawatts at various stages of implementation and construction. The company is also building about 2,500 kilometers of transmission lines to connect renewable projects to the national grid.

Malik said combining generation and transmission infrastructure into a single financing package creates synergies and removes the need for complex cross-guarantees between project developers and governments. He added that transmission lines are transferred to state ownership after completion and testing.

Ketevan Gonadze, Deputy Finance Minister of Georgia, recalled that after independence from the Soviet Union, Georgia experienced a decade of power outages due to separation from a unified energy system while maintaining energy security and sovereignty.

She said about 80% of Georgia’s electricity now comes from renewable sources, mainly hydropower, with further potential in hydro, wind and solar energy. The country is already part of an Azerbaijan-Georgia-Turkey-Europe integration framework and is developing a Black Sea submarine cable project initiated in 2018–2019, before current energy crises.

Gonadze said energy security involves not only diversifying supply routes but also financing sources. The Plexus submarine cable project, initially launched by Georgia and supported by a World Bank feasibility study, has expanded into a regional initiative involving Azerbaijan, Romania and Hungary and has been recognized by the European Union as a project of mutual interest.

She stressed the need for a realistic approach to the energy transition, noting that solar and wind generation require balancing capacity and that production of renewable technologies still depends on non-renewable energy sources.

Mongolia aims to increase the share of renewables in its energy mix to 34% by 2030, up from 9% in actual generation and 18% in installed capacity.

Bat-Erdene said Mongolia’s renewable energy potential is estimated at 2.6 terawatts in wind and solar generation, exceeding ADB’s regional expansion targets.

To attract private investment, the government is reforming tariff systems historically based on fossil fuels and heavy subsidies to make energy projects financially viable.

Wijayatunga said political will is the main challenge for cross-border energy projects, as linking sovereign power grids requires high-level decisions. Another major challenge is harmonizing technical standards, regulatory frameworks and system codes, including frequency and reliability requirements.

He said financing is the third critical factor, and ADB is leveraging its role as a trusted partner to mobilize additional capital.

Participants noted that Asia can benefit from a late-start advantage and avoid challenges faced in Europe, where around 40% of grids are over 40 years old. Bat-Erdene said that in some European countries, 500 gigawatts of wind capacity are waiting for grid connection due to outdated infrastructure and regulations. Asian countries, she said, can design more efficient, resilient and digital systems from the outset.

Malik cited regional integration initiatives such as CASA-1000 linking Tajikistan and Kyrgyzstan with prospects for Afghanistan and Pakistan, as well as the Central Asia unified power system connecting five countries from Tajikistan and Kyrgyzstan through Uzbekistan to Kazakhstan.

He said the Central Asia Regional Economic Cooperation program plays an important role in strengthening these systems and emphasized that development banks act as critical catalysts without which many projects would remain on paper.

Wijayatunga highlighted the need for energy market liberalization to maximize the benefits of interconnections, noting that Europe liberalized after integration began, while Asia could accelerate the process to gain faster economic benefits.

He said liberalization should include both generation and transmission, with diversified ownership models enabling private sector participation in grid infrastructure through market-based pricing of transmission services.

Gonadze described the concept of a “Middle Energy Corridor” linking Central Asia with the South Caucasus via the Caspian Sea and onward to Europe through Black Sea submarine cables.

She called it a safe alternative to traditional routes amid current geopolitical challenges, noting that subsea cable installation in the Black Sea is technically complex due to its depth, making it a unique engineering project.

Mongolia views renewable energy exports as a strategic diversification priority, with mining accounting for 23% of export revenues. Bat-Erdene said the country aims within a decade to connect its power system with northern China, Japan, South Korea and the rest of Central Asia.

Malik said transmitting electricity from Central Asia to Europe via Caspian and Black Sea submarine cables is a promising direction with strong interest from suppliers, consumers and investors.

He added that implementation will require innovative financing tools and non-traditional approaches from international financial institutions. Wijayatunga said he hopes to see power system integration between Southeast and South Asia through Myanmar during his tenure at ADB.

Participants agreed that long-term planning is essential for successful energy infrastructure projects regardless of political cycles and quarterly investor reporting.

Bat-Erdene emphasized the importance of launching small-scale practical projects to build momentum and public support for larger initiatives.

They concluded that energy integration cannot be achieved in a single year and will require a combination of bilateral, trilateral and regional agreements, prioritizing economically and technically viable routes built on mutual trust.