en.Wedoany.com Reported - The Asian Development Bank (ADB) has approved a $57.4 million financing package to support Sri Lanka in expanding access to affordable clean energy and reducing greenhouse gas emissions through rooftop solar aggregation and virtual net metering technology.
The financing package consists of a $35 million concessional loan, a $16.9 million grant from the European Union, a $5.5 million grant from the Japan Fund for the Joint Crediting Mechanism, and counterpart funding from implementing agencies, with the total project cost estimated at $80.5 million. The project will help two state-owned power utilities—Electricity Distribution Lanka (Private) Limited and Lanka Electricity Company (Private) Limited—establish a scalable, utility-led operating model that aggregates power from large rooftop solar systems and virtually distributes credits to eligible consumers. This model allows multiple users to share the benefits of solar power generation without installing photovoltaic panels on their own premises.
Shannon Cowlin, ADB Country Director for Sri Lanka, stated that the project will help Sri Lanka expand access to affordable renewable energy while enhancing grid resilience to build a more resilient and inclusive power sector. The project will also support small businesses, advance grid modernization and digitalization, and create new opportunities for women and youth in the clean energy industry.
The project aims to help eligible micro, small, and medium-sized enterprises, as well as community organizations—including those unable to install rooftop solar due to financial or space constraints—reduce electricity costs through allocations under a social compensation mechanism. The financing will support approximately 25 megawatts peak (MWp) of rooftop solar capacity. The project will also modernize and digitalize the distribution networks of the two power utilities and support the construction of a grid capable of accommodating more distributed renewable energy. Training facilities will be established to develop green skills, enhance women's participation in the clean energy sector, and improve capabilities in advanced low-carbon technologies.
ADB is a leading multilateral development bank, committed to supporting sustainable, inclusive, and resilient growth in the Asia-Pacific region by addressing complex challenges with its members and partners, leveraging innovative financial instruments and strategic partnerships. Established in 1966, it is owned by 69 members, 50 of which are from the Asia-Pacific region.
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