ADB approves USD 57m for Sri Lanka rooftop solar aggregation project

June 26 - The Asian Development Bank (ADB) on Friday said it has approved a USD-57.4-million (EUR 50.4m) financing package for a solar aggregation and virtual net metering project in Sri Lanka.

The project will support two government-owned utilities in establishing a utility-led rooftop solar aggregation and virtual net metering model that pools electricity from large rooftop solar installations and virtually distributes credits to eligible consumers.

It will involve the installation of about 25 MWp of rooftop solar capacity. The project will also help modernise and digitalise the distribution networks of the two utilities.

The project aims to lower electricity costs for eligible micro, small and medium-sized enterprises and community organisations, including such unable to install rooftop solar, through allocations under a social compensation mechanism.

The financing comprises a USD-35-million concessional loan, grants of USD 16.9 million from the EU and USD 5.5 million from the Japan Fund for the Joint Crediting Mechanism. Together with counterpart funding from implementing agencies, the total estimated project cost is USD 80.5 million.