The Asian Development Bank (ADB) has sanctioned a $434.25 million (approx. Rs 3,600 crore) loan to expand renewable energy capacity and bolster energy security in Assam. This project addresses Assam’s renewable energy shortfall to meet rising demand and reduce reliance on fossil fuels, according to ADB’s Friday statement.
The initiative aims to help Assam reach its renewable energy target of 3,000 MW by 2030. It includes constructing a 500 MW grid-connected solar photovoltaic (PV) plant in the Karbi Anglong district and developing a battery energy storage system to stabilize the grid and manage peak demand. This storage component will be implemented through a joint venture between Assam Power Distribution Company Limited (APDCL) and Oil and Natural Gas Corporation Ltd. Tripura Power Company Ltd.
ADB’s support extends to enhancing private sector investment in renewable energy by strengthening Assam’s public-private partnership (PPP) framework, enabling the state to develop and manage renewable energy PPP projects effectively.
A PPP agreement for an additional 250 MW solar PV plant in Karbi Anglong is also part of the project. The solar project will further improve local electricity distribution by replacing overhead power lines with covered conductor cables and adding new distribution transformers in the area and nearby rural regions.
ADB will contribute an additional $1 million grant from its Clean Energy Fund to support project implementation, community awareness, and capacity building for APDCL and local communities. Established in 1966, ADB is dedicated to fostering sustainable development and poverty eradication across Asia and the Pacific, with 69 member nations, 49 from the region.
