ADB approves $57.4 million clean energy package for Sri Lanka rooftop solar and grid upgrades

The Asian Development Bank has approved a $57.4 million financing package to expand rooftop solar access in Sri Lanka through aggregation and virtual net metering. The package includes a $35 million concessional loan, a $16.9 million EU grant, and a $5.5 million grant from the Japan Fund for the Joint Crediting Mechanism. Total project cost with counterpart funding is $80.5 million. The project will support about 25 MW-peak of rooftop solar installations, modernize distribution networks for two state-owned utilities, and strengthen grid readiness for distributed renewable energy. It includes a social compensation mechanism for micro, small and medium enterprises and community groups that cannot install their own solar panels. A training facility for green skills and measures to boost women's participation in clean energy are also part of the project. The ADB says the initiative will help reduce greenhouse gas emissions and support a more resilient power sector in Sri Lanka.