$434.25 million loan sanctioned by ADB for Assam Solar Project
Loan and Grant
4 min read
The Asian Development Bank(ADB) has approved a $434.25 million loan(around Rs 3600 crore) to fund the Assam Solar Project. The loan will help Assam increase its renewable energy capacity and improve energy security.
The ADB has also sanctioned an additional grant of $1 million to the state to raise awareness about green energy and capacity building.
According to the ADB, it will play an active role in attracting private sector investment in the solar photovoltaic project in Assam through public-private partnership(PPP).
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Assam Solar Project
The Assam Solar Project has been launched by the government of Assam.to develop solar energy capacity in the state.
The state government has set a target to develop an installed solar energy capacity to achieve its target of 3,000 megawatts (MW) by 2030.
The ADB loan amount will be used for the construction of a 500 MW grid-connected solar photovoltaic facility in Karbi Anglong district.
An additional 250 MW solar PV facility will be developed in the Karbi Anglong district under the public-private partnership mode.
The ADB loan will fund the establishment of a grid-connected battery energy storage system.Thus will help in ensuring grid stability during fluctuations in power demand and also meet peak power demand in the state.
The grid-connected battery energy storage system will be developed by a joint venture of the Assam Power Distribution Company Limited (APDCL) and the Tripura Power Company Limited. The Tripura Power Company Limited is a subsidiary company of the Oil and Natural Gas Corporation Limited.
$1 million grant for capacity building of APDCL
Apart from the $434.25 million loan to the Assam Solar project the ADB has also sanctioned a grant of $1 million for the Assam Solar Project .
The grant amount has been sanctioned from the ADB’s Clean Energy Financing Partnership Facility.
The grant will be used for capacity building of the Assam Power Distribution Company Limited (APDCL), support project implementation, and raise awareness of clean energy in surrounding communities.
ADB is a multilateral, regional bank focused on the Asian Pacific region. It was established in 1966 and has 69 members.
Headquarters : Mandaluyong, Metro Manila, Philippines
President : Masatsugu Asakawa
