Home / / ADB grants $ 300 m to boost renewable energy

ADB grants $ 300 m to boost renewable energy


Comments / 1227 Views / Wednesday, 16 July 2014 00:00


The Asian Development Bank (ADB) yesterday announced that it has approved a $ 300 million dual-tranche loan to help Sri Lanka scale up its use of clean energy and cut its reliance on costly petroleum oil for electricity generation. The loan will help Sri Lanka expand the use of renewable energy for power generation and have major benefits both for poor communities and the broader economy. “The country’s heavy dependence on expensive imported petroleum oil hurts the economy, undermines energy security, and harms the environment,” said ADB Principal Energy Specialist Mukhtor Khamudkhanov. The first $ 150 million tranche will finance a 30-megawatt (MW), run-of-the-river hydropower plant at Moragolla in Central Province and expand and upgrade transmission lines and other infrastructure in needy areas, including the former conflict-affected Northern and Eastern Provinces. The hydropower plant will generate an additional 97.7 million units of hydropower for the grid, saving about 72,300 tons of carbon dioxide (CO2) emissions every year while improved transmission lines will further reduce annual CO2 emissions by 98,400 tons. Environmental and social safeguards will be incorporated into the design of the program to minimise impacts, and a mechanism will be developed to guarantee downstream river flows so that sensitive fisheries, including the endangered Green Labeo, will not be adversely affected by the hydropower plant. The second tranche, expected to be delivered in 2016, will include expanding the 33-kilovolt medium voltage network to improve distribution of electricity to consumers and the development of transmission network facilities to allow power delivery from two 100 MW wind parks due to be built in the Northern Province in 2017 and 2020. Assistance will also be given for demand-side energy efficiency improvements including the use of smart grid and metering technologies, the retrofitting of buildings with energy saving features, and the installation of cold thermal storage in selected buildings. The improved transmission system is expected to boost access to reliable power for about 300,000 customers in rural areas and small towns who currently suffer from low quality supplies. The program also supports Sri Lanka’s wider energy investment road map, including its plan to increase the share of grid power generated from nonconventional renewable energy sources, such as mini-hydropower, wind power, and solar power, to 20% of the total by 2020. In addition to ADB funds, there will be co-financing of up to $ 60 million from France’s Agence Française de Développement, and counterpart funds of $ 80 million from the Government of Sri Lanka, for a total program cost of $ 440 million. The program is expected to be completed by late 2020.

Share This Article


COMMENTS

Today's Columnists

Biogas for Colombo A climate neutral city

2 July 2015

   Colombo can generate fertiliser/soil conditioner and support hydrophonics   Imagine a city which derives its own energy from its own waste – both electricity and transport fuel. Think about the impor...


Simple lessons from the Greek crisis

2 July 2015

An economy, much like a household, must learn to live within their means. If what they ‘consume’ far exceeds what they produce (domestically) and what they earn (via exports), then bankruptcy is a matter of time Printing m...


Rajapaksa’s swansong

1 July 2015

    A comparison between Slobodan Milosevic and Mahinda Rajapaksa   Slobodan Milosevic was the President of Serbia from 1989 to 1997 and President of the Federal Republic of Yugoslavia from 1997 ...


NM at 110

30 June 2015

This year marked the 110th birth anniversary of Nanayakkarapathirage Martin Perera, better known as Dr. N.M. Perera; Leader of the Lanka Sama Samaja Party, popular labour leader, one-time Mayor of Colombo, outstanding Parliamentarian, Marxist, int...


Columnists More