ADB Approves $434M Loan for 500 MW Solar Plant in Assam

The Asian Development Bank (ADB) has sanctioned a USD 434.25 million loan to support Assam’s renewable energy ambitions by constructing a 500 MW grid-connected solar photovoltaic (PV) facility in the Karbi Anglong district. The Assam Solar Project aims to significantly enhance the state’s renewable energy capacity, bolstering energy security and promoting sustainable energy development in the region.

Key Highlights 

Loan Amount

• ADB approved a USD 434.25 million loan to support Assam’s renewable energy capacity expansion.

Project Focus

500 MW Solar PV Facility

• A grid-connected solar photovoltaic (PV) facility will be built in Assam’s Karbi Anglong district with a 500 MW capacity.

Battery Energy Storage System (BESS)

• The project includes a grid-connected battery energy storage system to ensure stability and meet peak power demands.

Partnerships

• The storage system will be developed through a joint venture between Assam Power Distribution Company Limited (APDCL) and Oil and Natural Gas Corporation Ltd. Tripura Power Company Ltd.

Renewable Energy Goals

• The project supports Assam’s renewable energy target of 3,000 MW by 2030.
• It aims to reduce dependency on fossil fuels and develop a comprehensive renewable energy roadmap.

Private Sector Investment & Public-Private Partnerships (PPPs)

• ADB will help Assam attract private sector investment by strengthening the PPP framework.
• A 250 MW additional solar PV facility in Karbi Anglong will be developed through a PPP agreement.

Infrastructure Development

• To enhance electricity distribution, the project will replace traditional overhead power lines with aerial covered conductor cables around the solar facility and nearby rural areas.
• New distribution transformers will be installed to improve energy delivery.

Technical Assistance Grant

• ADB will also provide a USD 1 million grant from its Clean Energy Fund under the Clean Energy Financing Partnership Facility to support

Project implementation and technical assistance

• Capacity-building initiatives for APDCL and local communities.
• Raising awareness about renewable energy benefits and practices.

ADB’s Commitment

• ADB’s long-term goal is a prosperous, inclusive, resilient, and sustainable Asia-Pacific region, working to eliminate extreme poverty.

About Asian Development Bank (ADB)

• It is a multilateral development bank established on 19th December 1966.
• It is the principal international development finance institution for the Asia-Pacific region.
• It envisions a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty in the region.

Functions

• It provides assistance to its developing member countries, the private sector, and public-private partnerships through grants, loans, technical assistance, and equity investments to promote social and economic development.
• ADB maximizes the development impact of its assistance by facilitating policy dialogues, providing advisory services, and mobilizing financial resources through cofinancing operations that tap official, commercial, and export credit sources.

Headquarters

• Manila, Philippines.

Membership

• Membership in the ADB is open to members and associate members of the United Nations Economic Commission for Asia and the Far East.
• It’s also open to other regional countries and non-regional developed countries that are members of the U.N. or of any of its specialized agencies. 

Control

• ADB is run by a board of governors, which represents the member countries of the ADB. 
• The ADB was modeled closely on the World Bank and has a similar weighted voting system where votes are distributed in proportion to members’ capital subscriptions.
• As of 2022, ADB’s five largest shareholders are Japan and the United States (each with 15.6% of total shares), the People’s Republic of China (6.4%), India (6.3%), and Australia (5.8%).

Source of Funding

• It raises capital regularly through the international bond markets.
• The ADB also relies on member contributions, retained earnings from lending, and the repayment of loans for the funding of the organization.