ADB Supports Assam’s Renewable Energy with Major Loan
The Asian Development Bank (ADB) has approved a loan of USD 434.25 million to boost renewable energy in Assam, India. This project will build a 500 MW solar photovoltaic facility in Karbi Anglong district.
Project Details
The project includes a grid-connected battery energy storage system to ensure grid stability and meet peak power demand. This will be a joint venture between Assam Power Distribution Company Limited (APDCL) and Oil and Natural Gas Corporation Ltd. Tripura Power Company Ltd.
Goals and Benefits
According to Jiwan Acharya, ADB Principal Energy Specialist, the project aims to address Assam’s renewable energy capacity shortage, reduce fossil fuel dependency, and help achieve a 3,000 MW solar energy target by 2030. ADB will also strengthen public-private partnerships to attract private investment and develop an additional 250 MW solar PV facility.
Infrastructure Improvements
The project will enhance electricity distribution by replacing overhead lines with aerial covered conductor cables and installing new transformers. ADB will provide an additional USD 1 million grant for technical assistance, awareness, and capacity building.
ADB’s Commitment
ADB is dedicated to creating a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, with a focus on eradicating extreme poverty. Established in 1966, ADB is owned by 69 members, with 49 from the Asian region.
Doubts Revealed
ADB -: ADB stands for Asian Development Bank. It is a bank that helps countries in Asia, including India, by providing money for projects that can improve their economies and help people.
Loan -: A loan is money that is borrowed and needs to be paid back later. In this case, ADB is giving money to Assam to help build solar energy projects, and Assam will have to pay it back over time.
Solar Energy -: Solar energy is power that we get from the sun. It is a clean and renewable source of energy, which means it doesn’t run out and doesn’t pollute the environment.
500 MW -: MW stands for megawatt, which is a unit to measure power. 500 MW is a lot of power, enough to supply electricity to many homes and businesses.
Karbi Anglong -: Karbi Anglong is a district in the state of Assam, India. It is where the new solar energy project will be built.
Battery Energy Storage System -: A battery energy storage system is a big battery that stores electricity. It helps save energy for later use, especially when the sun isn’t shining.
Fossil Fuel Dependency -: Fossil fuel dependency means relying on coal, oil, or gas for energy. These are not renewable and can harm the environment, so using solar energy helps reduce this dependency.
Public-Private Partnerships -: Public-private partnerships are when the government and private companies work together on a project. This helps share the costs and benefits, making it easier to complete big projects like solar energy plants.
