ADB approves USD 434.25 million loan for 500 MW solar facility in Assam

New Delhi [India], October 25 (ANI): The Asian Development Bank (ADB) has approved a USD 434.25 million loan to increase renewable energy capacity and improve energy security in the state of Assam.
The ADB on Thursday stated that the Assam Solar Project will construct a grid-connected solar photovoltaic (PV) facility in Karbi Anglong district with a capacity of 500 MW.
The project will support the development of a grid-connected battery energy storage system to ensure grid stability and meet peak power demand.
This storage system will be established through a joint venture between the Assam Power Distribution Company Limited (APDCL) and the Oil and Natural Gas Corporation Ltd. Tripura Power Company Ltd.
"Addressing the renewable energy capacity shortage in Assam is crucial to meet growing demand and reduce dependency on fossil fuels, this project will help Assam develop a renewable energy road map and increase its solar energy capacity to achieve its target of 3,000 megawatts (MW) by 2030" said Jiwan Acharya, ADB Principal Energy Specialist .
ADB will also help attract private sector investment into renewable energy by strengthening the state's public-private partnership (PPP) framework and build its capacity to develop and manage renewable energy PPP projects. The project will help establish a PPP agreement to develop an additional 250 MW solar PV facility in the Karbi Anglong district.
The project will improve the distribution of electricity around the solar PV facility and neighboring rural areas by replacing overhead power distribution lines with aerial covered conductor cable and installing new distribution transformers.
ADB will also provide an additional USD 1 million technical assistance grant from its Clean Energy Fund under the Clean Energy Financing Partnership Facility to support project implementation, awareness-raising, and capacity building of the APDCL and surrounding communities.
ADB stated that it is committed to achieve a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty.
The Asian Development Bank was established in 1966 and it is owned by 69 members, 49 members of ADB are from the Asian region. (ANI)