Developing countries across Asia and the Pacific are failing to realise the full benefits of the clean energy transition—such as enhanced energy security, green job creation, and wider electricity access—due to insufficient investment in power grids, according to a new report by the Asian Development Bank (ADB).
The ADB’s Energy Transition Readiness Assessment for Developing Asia and the Pacific, produced in collaboration with the World Economic Forum (WEF), underscores the urgency of expanding and modernising interconnected electricity grids across the region. The report recommends bolstering grid infrastructure to meet surging demand and enable the integration of intermittent renewable energy sources.
Despite these challenges, the analysis positions the region as a global leader in clean energy growth. Clean energy investment in developing Asia soared by over 900% since 2013, reaching $729.4 billion in 2023—accounting for approximately 45% of global investment.
While the People’s Republic of China (PRC) accounted for the majority of this sum, India and seven other developing countries also reported that renewables comprised over 75% of new energy capacity additions in 2022.
The report introduces a new readiness framework based on the WEF’s Energy Transition Index, evaluating countries’ capacities to reshape their energy systems.
While the PRC leads in most areas, nations such as Georgia, Malaysia, and Thailand have notably improved regulatory frameworks to support a clean transition.
Bangladesh, India, and Indonesia have led the charge in expanding electricity access to over one billion people since 2010.
“The expansion of digitalised grid infrastructure is essential to integrate low-carbon electricity seamlessly into national power systems,” said ADB Energy Sector Senior Director Priyantha Wijayatunga.
“With Asia and the Pacific projected to generate two-thirds of global energy growth by 2040, bridging this immense supply gap will require robust policies, innovative technologies, and long-term financing.”
Roberto Bocca, head of the Centre for Energy and Materials at the WEF, added: “This extensive analysis highlights both the opportunities and the obstacles facing developing Asian economies. Reliable, affordable, and sustainable energy systems are crucial to regional and national development.”
The report stresses that while countries must carve out unique pathways based on domestic circumstances, stronger in-country and regional interconnections—particularly in Central West Asia, Southeast Asia, and South Asia—can improve efficiency and reduce energy costs across the board.
These themes will be explored further at ADB’s Asia Clean Energy Forum in June, where cross-border energy trade and the powering of rapidly urbanising and industrialising regions will take centre stage.
Founded in 1966, ADB is a leading multilateral development bank owned by 69 members—49 from the Asia-Pacific region—working to promote sustainable, inclusive, and resilient development through infrastructure, finance, and partnerships.
