The Asian Development Bank (ADB) has approved a significant loan of $434.25 million (approximately Rs 3,600 crore) aimed at expanding renewable energy capacity and enhancing energy security in Assam. This initiative is crucial for addressing the state’s renewable energy shortfall, which is necessary to meet the rising energy demand and reduce reliance on fossil fuels [1].
Key Objectives of the Project
- Renewable Energy Target: The project supports Assam’s goal of achieving 3,000 MW of renewable energy capacity by 2030.
- Solar PV Plant: It includes the construction of a 500 MW grid-connected solar photovoltaic (PV) plant in the Karbi Anglong district.
- Battery Energy Storage: A battery energy storage system will be developed to stabilize the grid and manage peak demand. This component will be implemented through a joint venture involving the Assam Power Distribution Company Limited (APDCL) and Oil and Natural Gas Corporation Ltd. Tripura Power Company Ltd..
- Public-Private Partnerships: ADB aims to enhance private sector investment in renewable energy by strengthening Assam’s public-private partnership (PPP) framework, enabling effective development and management of renewable energy projects.
- Additional Solar Capacity: The project also includes a PPP agreement for an additional 250 MW solar PV plant in Karbi Anglong.
- Local Electricity Distribution: Improvements in local electricity distribution will be made by replacing overhead power lines with covered conductor cables and adding new distribution transformers in the area and nearby rural regions.
Additional Support
ADB will provide an extra $1 million grant from its Clean Energy Fund to support project implementation, community awareness, and capacity building for APDCL and local communities. Established in 1966, ADB is committed to fostering sustainable development and poverty eradication across Asia and the Pacific, with 69 member nations, including 49 from the region [2].
This loan from ADB represents a significant step towards enhancing Assam’s renewable energy infrastructure and ensuring a sustainable energy future for the region.
Learn more:
- ADB Approves $434.25 Million Loan for Renewable Energy …
- ADB Approves Support to Establish Solar Facility in Assam, India | Asian Development Bank
- ADB Grants $434.25 million loan to boost renewable energy in Assam – Renewable Watch
