ADB eyes USD 1B support to upgrade PH power grid

MANILA — The Asian Development Bank (ADB) is preparing a financing package of up to USD 1 billion to help modernize the Philippines’ national power grid and accelerate the country’s clean energy transition.

“We are looking at strengthening your national grid,” said Priyantha Wijayatunga, senior director of ADB’s Energy Sector Office, at the sidelines of the Singapore International Energy Week.

“As you know, the grid has not been strengthened in recent times adequately, particularly to absorb renewable energy from offshore wind and so on,” he added.

The proposal remains under discussion due to the private operation of the transmission system by the National Grid Corporation of the Philippines (NGCP).

Wijayatunga explained that funding would likely require close coordination with the Department of Energy (DOE) and could involve both sovereign and non-sovereign financing structures.

“It will have to be through DOE if we are talking of sovereign financing because obviously sovereign financing cannot go into the private sector,” he said.

“But it can be both sovereign and non-sovereign,” he added, noting that contractual negotiations between the government and NGCP may be needed.

“It’s in the pipeline, but I don’t know how long it will take,” Wijayatunga said.

“So in a way, it might take a while, but it’s necessary.”

ADB emphasized that grid modernization is essential to harnessing the Philippines’ offshore wind potential and securing long-term energy reliability.

“If you want to bring offshore wind into the grid, you need grid investments. That’s where we are looking at,” Wijayatunga noted.

The Philippines has emerged as one of Asia’s most promising renewable energy markets, but outdated transmission infrastructure and limited inter-island connectivity continue to constrain growth.

Upgrading the national grid would allow clean power from remote areas—including wind, hydro, and solar—to reach population centers more efficiently.

The planned financing falls under ADB’s broader push to support energy transition efforts in developing member countries.

ADB has expanded its financial capacity with a revised Capital Adequacy Framework, enabling an additional USD 10 billion annually in new lending.

“We have money, and we are ready to support,” Wijayatunga said.

“But projects have to be ready for financing,” he added, stressing the need for feasibility studies and environmental compliance.

Beyond national efforts, ADB is also backing the ASEAN Power Grid (APG), a long-term plan to connect Southeast Asia’s electricity systems and boost regional energy trade.

Together with the World Bank Group and ASEAN, ADB launched a financing platform on October 15 to fund bankable APG projects and support national utilities and developers.

ADB has pledged up to USD 10 billion for APG over the next 10 years, while the World Bank committed USD 2.5 billion for project preparation and structuring.

The ASEAN region expects electricity demand to nearly double by 2040 due to economic and population growth.

By strengthening interconnections, ASEAN aims to optimize power sharing, balance grid loads, and enhance overall energy security—goals that align with ADB’s efforts in the Philippines.