ADB Approves USD 434.25 Million Loan to Boost Assam’s Renewable Energy Capacity

Assam, Oct 26 (KNN) The Asian Development Bank (ADB) has approved a loan of $434.25 million (approximately Rs 3,600 crore) to enhance renewable energy infrastructure and improve energy security in Assam.

The initiative aligns with Assam’s strategy to reduce dependency on fossil fuels and meet the region’s rising energy demand.

ADB emphasized that addressing Assam’s renewable energy gap is crucial to ensure sustainable development. This project supports the state’s goal of generating 3,000 megawatts (MW) of renewable energy by 2030, with a focus on expanding solar capacity.

Central to the project is the construction of a 500 MW grid-connected solar photovoltaic (PV) plant in the Karbi Anglong district. Additionally, the development includes a battery energy storage system, essential for maintaining grid stability and meeting peak demand.

This energy storage initiative will be carried out through a joint venture between Assam Power Distribution Company Limited (APDCL) and Oil and Natural Gas Corporation Ltd.'s Tripura Power Company Ltd.

To attract private sector involvement, ADB will support the state in strengthening its public-private partnership (PPP) framework. A PPP agreement will be established for an additional 250 MW solar PV plant in Karbi Anglong, further expanding Assam’s renewable portfolio.

In parallel, the project aims to enhance electricity distribution around the solar facility and neighbouring rural areas. Existing overhead power lines will be replaced with aerial covered conductor cables, and new distribution transformers will be installed to improve supply quality and reliability.

ADB will also provide a $1 million technical assistance grant from its Clean Energy Fund to facilitate project execution and build capacity within APDCL and local communities. This grant will support community outreach and awareness programs related to renewable energy.

"ADB remains committed to fostering a prosperous, inclusive, and sustainable Asia and the Pacific," the institution stated. Founded in 1966, ADB consists of 69 member countries, including 49 from the Asia-Pacific region. Its efforts are geared toward eradicating extreme poverty while promoting sustainable growth across the region.

The Assam Solar Project represents a significant step forward in the state’s transition to clean energy, promoting both environmental sustainability and energy security.

(KNN Bureau)