Asian Development Bank gives US$ 50 million to Sri Lankan banks and financial institutions for rooftop solar panels
The Asian Development Bank (ADB) has given Sri Lanka US$ 50 million (Rs. 8 billion) for lending through banks and financial institutions for customers to buy rooftop solar power panels at eight percent annual interest.
Sri Lanka’s Finance Ministry has stated that households and entrepreneurs will be provided maximum credit facilities up to 7. 5 million rupees under the Enterprise Sri Lanka project.
Accordingly, the Department of Development Finance of the Ministry of Finance, the implementing agency of the project, is to coordinate with the selected banks and financial institutions to provide credit facilities to the customers to buy rooftop solar panels from suppliers who have registered under the Sustainable Energy Authority.
The Ceylon Electricity Board (CEB) and Lanka Electricity Company Ltd (LECO) will give technical recommendations to financial institutions on technical proposals of the customers and the banks will review and approve applications for connecting solar rooftop systems to the distribution network.
It is expected to add 50 MW to the national grid under this project.
“The main objective of this project is to support government’s “Battle for Solar Power” programme to achieve the target of 200 MW by 2020 and 1000 MW by 2025 through solar power generation,” the Finance Ministry statement has noted.
“Clean and sustainable power generation will be enhanced through the proposed project by increasing debt facilities and funding for the rooftop solar power generation, developing solar rooftop market infrastructure and bankable subproject pipeline.”
OSL take:
The ADB assistance to help in the Sri Lankan government’s initiative to promote solar power generation among local households provides a business opportunity to companies engaged in providing solar power panels and renewable energy generation options. Given the funding availability, interested businesses could look at providing the required solar power panels to assist in Sri Lanka’s “Battle for Solar Power” programme.
| Article Code : | VBS/AT/20092018/Z_7 |