ADB approves USD 434mn dollar loan to Assam for renewable energy

Guwahati, Oct. 25: To increase renewable energy capacity and improve energy security in Assam, the Asian Development Bank (ADB) on Thursday approved a USD 434.25 million loan for the State.

The project will help Assam develop a renewable energy roadmap and increase its solar energy capacity to achieve its target of 3,000 megawatts (MW) by the year 2030.

"Addressing the renewable energy capacity shortage in Assam is crucial to meet growing demand and reduce dependency on fossil fuels," said ADB Principal Energy Specialist Jiwan Acharya.

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.

The ADB will help attract private sector investment into renewable energy by strengthening the State's public-private partnership (PPP) framework and building 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 solar project will improve the distribution of electricity around the solar PV facility and neighbouring rural areas by replacing over-head power distribution lines with aerial-covered conductor cables and installing new distribution transformers.

ADB will 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.