The Asian Development Bank’s (ADB) board of directors has approved a $50m loan to fund rooftop solarpower generation systems in Sri Lanka.
The loan will be provided under ADB’s Rooftop Solarpower Generation Project and is expected to help increase Sri Lanka’s share of renewable energy sources.
The project is set to finance 50MW of additional capacity in Sri Lanka, which last year achieved an electrification rate of 99.3% compared to only 29% in 1990.
In addition, thermal power contributed 67.2% to the total power generation in 2016, compared to 24.6% of hydropower and 8.2% from nonconventional renewable sources. However, the country is still largely dependent on fossil fuels and is struggling to cut greenhouse gas emissions by 20% as part of its commitment to the Paris agreement.
ADB principal energy specialist Mukhtor Khamudkhanov said: “Sri Lanka’s energy sector has made tremendous progress over the last two and a half decades in bringing electricity to almost everyone in the country.
“But there is a need to diversify the country’s energy mix toward more renewable and sustainable sources.”
ADB plans to provide a $1m technical assistance from the Asian Clean Energy Fund under the Clean Energy Financing Partnership Facility to help build capacity, increase awareness of stakeholders, and support the implementation of the Rooftop Solarpower Generation Project in Sri Lanka.