New Delhi: The Asian Development Bank has provided the Sri Lankan government with a $50 million credit line to help solar rooftop installations at concessional financing. The funding helped finance the installation of rooftop solar panels, leading to the completion of the Rooftop Solar Power Generation Project, which has installed 70.9 megawatts (MW) of solar photovoltaic (PV) generation facilities across the country, an ADB release stated.
The project, which initially aimed to install 50 MW of solar panels, has helped Sri Lanka move closer to its goal of increasing rooftop solar installations to 1,000 MW by 2025, the release added. The project benefitted more than 5,000 customers and has prevented the release of 70,000 metric tons of carbon dioxide (CO2) emissions per year. By reducing the nation’s dependence on fuel imports, the project has eased the burden on government finances.
This crucial shift toward solar energy is parallel to the increasing demand for electricity in Sri Lanka which is projected to double by 2035. The country’s heavy reliance on oil-fired thermal generation has made electricity more expensive and threatened energy security. Shifting to renewable sources like solar helps bolster energy security and mitigate Sri Lanka’s vulnerability to climate change.
According to the ADB release, the $50 million credit line was made available to customers island-wide through 10 participating financial institutions at a low interest rate. This initiative supports the Government of Sri Lanka’s goal of expanding electricity access, promoting sustainable clean energy development, and improving the country’s power generation mix.