The Asian Development Bank (ADB) has sanctioned a $57.4 million financing package to aid Sri Lanka in enhancing access to affordable clean energy and cutting down on greenhouse gas emissions. This funding will facilitate rooftop solar aggregation and virtual net metering, enabling eligible consumers to utilize solar power without the need to install panels on their own structures.
The financial assistance comprises a $35 million concessional loan, a $16.9 million grant from the European Union, and a $5.5 million grant from the Japan Fund for the Joint Crediting Mechanism. With counterpart funding from implementing agencies, the total estimated project cost is set at $80.5 million, as per the ADB announcement on Friday.
The Rooftop Solar Aggregation and Virtual Net Metering Project, as outlined by ADB, aims to assist two government-owned power utilities in establishing a scalable, utility-led model. This model will aggregate electricity generated by large rooftop solar systems and distribute credits virtually to eligible consumers, as reported by Xinhua news agency.
Shannon Cowlin, ADB Country Director for Sri Lanka, highlighted that the initiative will broaden access to cost-effective renewable energy, enhance grid preparedness, and bolster a more resilient and inclusive power sector. The project targets micro, small, and medium-sized enterprises, along with community organizations, to reduce electricity expenses through a social compensation mechanism, especially for those facing financial or space constraints in installing rooftop solar systems.
The financing is expected to support approximately 25 megawatt-peak of rooftop solar installations, while also aiding in the modernization and digitalization of the distribution networks of the two utilities. Furthermore, it will reinforce the grid to accommodate a higher proportion of distributed renewable energy, in addition to establishing a training center for green skills development, promoting women’s involvement in the clean energy sector, and enhancing expertise in advanced low-carbon technologies.
