ADB approves $57.4 million clean energy financing package for Sri Lanka
Colombo, June 27 (IANS) The Asian Development Bank (ADB) has approved a 57.4-million-US-dollar financing package to help Sri Lanka expand access to affordable clean energy and reduce greenhouse gas emissions, the bank said in a statement.
The financing will support rooftop solar aggregation and virtual net metering, allowing eligible consumers to benefit from solar power without installing panels on their own buildings.
The package includes a 35-million-dollar concessional loan, a 16.9-million-dollar grant from the European Union and a 5.5-million-dollar grant from the Japan Fund for the Joint Crediting Mechanism. Counterpart funding from implementing agencies will bring the total estimated project cost to 80.5 million dollars, the ADB said on Friday (local time).
ADB said the Rooftop Solar Aggregation and Virtual Net Metering Project will help two government-owned power utilities establish a scalable, utility-led model. The model will pool electricity generated by large rooftop solar systems and virtually distribute credits to eligible consumers, reports Xinhua news agency.
ADB Country Director for Sri Lanka Shannon Cowlin said the project would widen access to affordable renewable energy, strengthen grid readiness and support a more resilient and inclusive power sector.
The project will help micro, small and medium-sized enterprises and community organisations, including those unable to install rooftop solar systems because of financial or space constraints, reduce electricity costs through allocations under a social compensation mechanism.
The financing will support about 25 megawatt-peak of rooftop solar installations. It will also help modernise and digitalise the distribution networks of the two utilities and strengthen the grid for greater use of distributed renewable energy.
ADB said the project will also establish a training facility for green skills development, strengthen women’s participation in the clean energy sector and build capacity in advanced low-carbon technologies.
–IANS
sd/