ADB Fuels Solar Revolution in Assam with $434 Million Boost

The Asian Development Bank has sanctioned a $434.25 million loan to Assam to boost renewable energy capacity. A 500 MW solar photovoltaic facility in Karbi Anglong district and a battery energy storage system are focal points, aiming to meet energy demands and foster sustainable development in the region.

The Asian Development Bank (ADB) has announced the approval of a USD 434.25 million loan intended to amplify renewable energy capabilities and bolster energy security within Assam. The announcement, made on Thursday, detailed plans for the Assam Solar Project to build a 500 MW grid-connected solar photovoltaic (PV) plant in Karbi Anglong district.

This initiative will also foster the development of a grid-connected battery energy storage system to enhance grid reliability and manage peak power requirements. The storage facility will be implemented through a collaboration between Assam Power Distribution Company Limited (APDCL) and the Oil and Natural Gas Corporation Ltd's Tripura Power Company Ltd.

According to Jiwan Acharya, ADB's Principal Energy Specialist, addressing the renewable energy shortfall is pivotal for Assam to satisfy rising energy demands and decrease reliance on fossil fuels. This venture will aid Assam in crafting a renewable energy roadmap, aiming to scale solar energy capacity and fulfill a 3,000 MW target by 2030. Additionally, ADB will focus on attracting private sector investment by refining the state's public-private partnership framework and bolstering capacity for managing renewable energy PPP projects, starting with a new 250 MW solar PV facility in Karbi Anglong.

The initiative will also enhance power distribution around the solar PV site and throughout neighboring rural zones by replacing overhead lines with aerial covered conductor cables and introducing new distribution transformers. Furthermore, ADB will allocate an extra USD 1 million in technical assistance from its Clean Energy Fund under the Clean Energy Financing Partnership Facility to support project execution, raise awareness, and build capacities within APDCL and local communities.

The ADB emphasized its dedication to establishing a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while continuing efforts to eradicate extreme poverty. Founded in 1966, the ADB is comprised of 69 member nations, with 49 of them hailing from the Asian region.

(With inputs from agencies.)