The Asian Development Bank (ADB) has approved a $434.25m loan to enhance renewable energy capacity and fortify energy security in Assam, India.

The Assam solar project aims to establish a 500MW grid-connected solar photovoltaic (PV) facility in the Karbi Anglong district.

It will include the development of a grid-connected battery energy storage system, crucial for maintaining grid stability and addressing peak power demands.

The project will be set up through a collaboration between the Assam Power Distribution Company Limited (APDCL) and the Oil and Natural Gas Corporation Tripura Power Company.

ADB intends to draw private sector investment into the renewable sector by enhancing Assam’s public-private partnership (PPP) framework.

The bank’s efforts will bolster the state’s ability to develop and manage renewable energy PPP projects effectively.

Furthering its commitment, ADB will assist in establishing a PPP agreement to develop an additional 250MW solar PV facility in the same district. This extension will contribute significantly to the region’s clean energy infrastructure.

To improve the local electricity distribution network, the project will replace existing overhead power lines with aerial covered conductor cables and install new distribution transformers.

These upgrades are expected to benefit the solar PV facility and the surrounding rural communities.

In addition to the loan, ADB is providing a $1m technical assistance grant from its Clean Energy Fund.

The grant, part of the Clean Energy Financing Partnership Facility, will support project implementation, raise awareness and enhance the capacity of APDCL and the local communities.

ADB principal energy specialist Jiwan Acharya stated: “Addressing the renewable energy capacity shortage in Assam is crucial to meet growing demand and reduce dependency on fossil fuels.

“This project will help Assam develop a renewable energy road map and increase its solar energy capacity to achieve its target of 3,000MW by 2030.”

In September 2024, ADB approved a $500m policy-based loan to facilitate Indonesia’s transition to sustainable energy sources.