The integration of rooftop solar infrastructure not only supports the broader national agenda of reducing carbon emissions but also enhances the resilience of India’s energy grid.
The Asian Development Bank (ADB) has greenlit a substantial $240.5 million in loans aimed at accelerating the adoption of rooftop solar systems across India. This initiative, part of the Multitranche Financing Facility (MFF) Solar Rooftop Investment Program, marks a pivotal step towards enhancing energy accessibility through renewable sources in the region.
Initially sanctioned in 2016, the program underwent restructuring in 2023 to prioritize the deployment of residential solar rooftop solutions. ADB’s financing, split into tranches 2 and 3 of the MFF, aligns with India’s ambitious target to derive 50% of its total electricity capacity from non-fossil fuel sources by 2030, underscoring the nation’s commitment to global carbon reduction goals.
According to ADB Principal Energy Specialist Kaoru Ogino, ADB’s financing supports these goals and will contribute to the Prime Minister Surya Ghar program, which encourages people to install rooftop solar systems across the country.
“India aims to achieve about 50 per cent of cumulative electric power installed capacity from non-fossil fuel energy sources by 2030 in line with its global commitments to reduce carbon emissions,” says Kaoru Ogino. “ADB’s financing supports these goals and will contribute to the Prime Minister Surya Ghar program, which encourages people to install rooftop solar systems across the country.”
The funds will be channelled through key financial institutions including the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD). SBI will receive $90.5 million from ADB’s Clean Technology Fund (CTF), while NABARD will be allocated $150 million—comprising $80 million from ADB’s ordinary capital resources and $70 million from CTF. These loans will facilitate developers and end-users throughout India in installing rooftop solar systems.
The integration of rooftop solar infrastructure not only supports the broader national agenda of reducing carbon emissions but also enhances the resilience of India’s energy grid. By generating electricity closer to consumption points, these systems mitigate the strain on long-distance power supply networks and reduce associated energy losses, thereby promoting a more efficient power distribution framework.
An official said that this latest financial commitment underscores ADB’s stance in promoting renewable energy solutions that are crucial for India’s energy security and its transition towards a low-carbon future.
Delays to cost B’desh $13 Billion
In the meanwhile, the ADBis set to conduct a comprehensive review of its substantial portfolio of projects in Bangladesh, totalling nearly US$13 billion, amid significant implementation challenges and delays. Officials announced the upcoming scrutiny during a press briefing on Tuesday.
Scheduled from July 22 to 24 in Dhaka, the review will bring together ADB representatives, Bangladesh’s Economic Relations Division (ERD), and key project implementers. According to senior ERD officials, the tripartite meeting aims to assess the progress and address hurdles faced by ongoing ADB-funded initiatives across the country.
“We are convening to closely examine the status of all ongoing ADB-funded projects,” stated a senior ERD official. “The meeting is crucial as it provides an opportunity to resolve any existing issues hindering project implementation.”
Bangladesh currently hosts 79 public sector projects financed by the ADB, making the lender the country’s second-largest multilateral development partner. However, delays in project execution have been attributed to various factors, including under-performance by implementing agencies and complex procurement processes.
“Some ADB-funded projects are encountering delays due to implementation issues,” acknowledged an ERD official. “Our objective for the upcoming tripartite review is to collaboratively address these challenges.”
Established in 1966, ADB remains steadfast in its commitment to fostering inclusive and sustainable development across Asia and the Pacific region. With ownership spanning 68 member countries, ADB continues to play a pivotal role in eradicating extreme poverty while advancing economic prosperity and environmental sustainability.
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