ADB Approves $434.25 Million Loan for Assam’s Solar Energy Expansion

Guwahati: The Asian Development Bank (ADB) has officially approved a loan of USD 434.25 million (approximately Rs 3,600 crore) to bolster renewable energy initiatives and enhance energy security in Assam. This investment addresses the region’s urgent need for increased renewable energy capacity, which is vital to meet escalating demand and lessen reliance on fossil fuels.The project is designed to support Assam’s ambitious goal of generating 3,000 megawatts (MW) of solar energy by 2030. Central to this initiative is the development of a 500 MW grid-connected solar photovoltaic (PV) facility in the Karbi Anglong district. Additionally, the project includes the establishment of a battery energy storage system aimed at ensuring grid stability and meeting peak power demands.This energy storage system will be implemented through a collaboration between the Assam Power Distribution Company Limited (APDCL) and the Oil and Natural Gas Corporation Ltd., alongside Tripura Power Company Ltd. ADB’s strategy also involves attracting private investment into Assam’s renewable energy sector by reinforcing the state’s public-private partnership (PPP) framework and enhancing its capacity for managing renewable energy projects.Furthermore, the project outlines the establishment of a PPP agreement for an additional 250 MW solar PV facility in Karbi Anglong, contributing to a more robust energy landscape. To improve electricity distribution in and around the solar PV facility, existing overhead power lines will be replaced with aerial covered conductor cables, and new distribution transformers will be installed to better serve neighboring rural areas.In addition to the loan, ADB will provide a technical assistance grant of $1 million from its Clean Energy Fund. This funding will support project implementation, raise awareness, and build capacity within the APDCL and surrounding communities. ADB remains dedicated to fostering a prosperous, inclusive, and sustainable future for Asia and the Pacific, while also working to eradicate extreme poverty.