ASIATODAY.ID, COLOMBO – Sri Lanka has secured a US$57.4 million financing package from the Asian Development Bank (ADB) to accelerate the expansion of rooftop solar energy, modernize its electricity grid, and improve access to affordable renewable power across the country.
The financing package includes a US$35 million concessional loan, US$16.9 million in grants from the European Union, and US$5.5 million from the Japan Fund for the Joint Crediting Mechanism. Together with counterpart funding from implementing agencies, the total project investment amounts to US$80.5 million.
The investment will fund the Rooftop Solar Aggregation and Virtual Net Metering Project, an innovative initiative that allows electricity generated from large rooftop solar systems to be pooled and distributed as energy credits to multiple consumers.
The model enables households, businesses, and community organizations to benefit from solar energy without installing rooftop panels themselves.
ADB said the project will help two state-owned electricity utilities—Electricity Distribution Lanka (Private) Limited and Lanka Electricity Company (Private) Limited—develop a scalable renewable energy model while strengthening and digitalizing Sri Lanka’s electricity distribution network.
Approximately 25 megawatt-peak (MWp) of rooftop solar capacity will be supported under the project, which is also expected to improve grid readiness for greater integration of distributed renewable energy.
The initiative is designed to lower electricity costs for eligible micro, small, and medium-sized enterprises (MSMEs) and community organizations, particularly those unable to install solar systems because of financial or space constraints.
Beyond expanding renewable energy generation, the project will establish a green skills training facility, promote greater participation of women in the clean energy sector, and strengthen local expertise in advanced low-carbon technologies.
The investment underscores Sri Lanka’s commitment to accelerating its energy transition, enhancing energy security, and reducing greenhouse gas emissions while building a more resilient and sustainable electricity system. (AT Network)
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