ADB approves USD 434.25 million loan for Assam’s 500 MW solar project

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The Asian Development Bank (ADB) has sanctioned a USD 434.25 million loan to enhance renewable energy capacity and strengthen energy security in Assam. This initiative will help address the state's growing power demand and reduce its reliance on fossil fuels.

According to ANI, the ADB confirmed on Thursday that the Assam Solar Project will involve the construction of a 500 MW grid-connected solar photovoltaic (PV) facility in the Karbi Anglong district. In addition to this, a grid-connected battery energy storage system will be developed to ensure grid stability and address peak power demand.

This storage system is being established through a collaborative effort between Assam Power Distribution Company Limited (APDCL) and the Oil and Natural Gas Corporation Ltd. (ONGC) Tripura Power Company Ltd.

Jiwan Acharya, ADB's Principal Energy Specialist, remarked that addressing Assam's renewable energy shortage is key to meeting the growing demand and transitioning away from fossil fuels. He stated, "This project will assist Assam in developing a renewable energy roadmap, with the goal of increasing solar energy capacity to 3,000 MW by 2030."

As per ANI reports, the ADB will also support the development of public-private partnerships (PPP) in renewable energy projects by strengthening the state's PPP framework. This is aimed at attracting private sector investment into Assam's renewable energy sector. The project will include a PPP agreement to develop an additional 250 MW solar PV facility in the Karbi Anglong district.

To further bolster the energy distribution network, the project will involve replacing overhead power distribution lines with aerial covered conductor cables and installing new distribution transformers around the solar facility and nearby rural areas. This improvement in infrastructure is expected to enhance electricity distribution and reliability.

Furthermore, the ADB will provide an additional USD 1 million as a technical assistance grant under the Clean Energy Financing Partnership Facility's Clean Energy Fund. This grant will be used to support project implementation, raise awareness, and build the capacity of APDCL and the surrounding communities.

The ADB reiterated its commitment to creating a prosperous, resilient, and sustainable Asia and the Pacific while working towards eradicating extreme poverty.

Founded in 1966, the ADB currently comprises 69 members, 49 of which are from within the Asian region.

(With inputs from ANI)