GUWAHATI: The Asian Development Bank (ADB) approved a $434.25 million loan to bolster renewable energy capacity on Thursday, October 24.
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In a bid to enhance energy security in Assam, this initiative aims to reduce the state’s dependency on fossil fuels and address the growing energy demand.
The Assam Solar Project will involve the construction of a 500-megawatt (MW) grid-connected solar photovoltaic (PV) facility in Karbi Anglong, while a grid-connected battery energy storage system will be additionally developed to ensure grid stability and manage peak power demand.
This energy storage solution will be implemented through a joint venture between the Assam Power Distribution Company Limited (APDCL) and the Oil and Natural Gas Corporation Ltd. Tripura Power Company Ltd.
“Addressing the renewable energy capacity shortage in Assam is crucial to meet growing demand and reduce dependency on fossil fuels,” ADB’s Principal Energy Specialist, Jiwan Acharya, emphasised the importance of this project. “This project will help Assam develop a renewable energy road map and increase its solar energy capacity to achieve its target of 3,000 MW by 2030.”
As part of its broader objectives, the project will facilitate private sector investment in Assam’s renewable energy sector by strengthening the state’s public–private partnership (PPP) framework.
In alignment with this, a PPP agreement will further support the development of an additional 250 MW solar PV facility in Karbi Anglong.
Finally, an extra $1 million technical assistance grant from ADB’s Clean Energy Fund will support project implementation, community awareness, and capacity building for APDCL and local communities.