Sri Lanka: Rooftop Solar Power Generation Project

Sovereign Project | 50373-002

To increase solar power generation and speed up implementation of the Battle for Solar Energy program, the Government of Sri Lanka requested ADB to provide a credit line that would enable institutional and domestic customers to finance installation of solar rooftop PV generation facilities. Technical and commercial frameworks will be improved to encourage the development of solar renewable resources that would add value in developing solar rooftop installations. The credit line will provide the required financing with preferential terms that will stimulate solar rooftop generation development. As part of the project, technical guidelines and standards for solar rooftop systems will be established.

Project Details

  • Project Officer
    Haputhanthri, Dinuk P.
    South Asia Department
    Request for information
  • Country/Economy
    Sri Lanka
  • Modality
    • Loan
    • Technical Assistance
  • Sector
    • Energy
Project Name Rooftop Solar Power Generation Project
Project Number 50373-002
Country / Economy Sri Lanka
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 3571-SRI: Rooftop Solar Power Generation Project
Ordinary capital resources US$ 50.00 million
TA 9389-SRI: Implementation Support to the Rooftop Solar Power Generation Project
Asian Clean Energy Fund under the Clean Energy Financing Partnership Facility US$ 1.00 million
TA 9389-SRI: Rooftop Solar Power Generation Project
Clean Energy Fund under the Clean Energy Financing Partnership Facility US$ 250,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Energy / Renewable energy generation - solar

Gender Equity and Mainstreaming Some gender elements
Description

To increase solar power generation and speed up implementation of the Battle for Solar Energy program, the Government of Sri Lanka requested ADB to provide a credit line that would enable institutional and domestic customers to finance installation of solar rooftop PV generation facilities. Technical and commercial frameworks will be improved to encourage the development of solar renewable resources that would add value in developing solar rooftop installations. The credit line will provide the required financing with preferential terms that will stimulate solar rooftop generation development. As part of the project, technical guidelines and standards for solar rooftop systems will be established.

The outputs of the project include: (i) debt funding for the solar rooftop power generation increased, (ii) solar rooftop market infrastructure and bankable subproject pipeline developed; and (iii) capacity and awareness of stakeholders, including the Central Bank of Sri Lanka, participating financial institutions (PFIs), commercial and domestic sector customers, increased.

These outputs will result in the following outcome: clean, sustainable power generation enhanced._The project will be aligned with the following impact: access to clean and reliable power supply in Sri Lanka enhanced by 2020 (Sri Lanka Energy Sector Development Plan for a Knowledge Based Economy 20152025).

Project Rationale and Linkage to Country/Regional Strategy

Sri Lanka has improved its energy sector performance and achieved a national electrification ratio of 98.5% in 2015 compared with 29% in 1990. However, high dependence on expensive fossil fuel energy continues. Sector challenges include meeting growing demand for electricity at a low cost and acceptable reliability, and attaining long-term sustainability. The high share of thermal power in the generation mix (51% in 2015, including 17% of oil-fired and 34% of coal-fired generation) creates a high cost base and is not a viable and sustainable solution for energy security and environment protection in the long term. Diversification to renewable energy sources, such as wind and solar energy, will improve the country's energy security and the environment. The Government of Sri Lanka aims to ensure sustainable development of indigenous energy resources and encourage development of renewable energy sources. The government objectives include, among others, increasing the share of energy supply from nonconventional renewable energy sources to 20% by 2020. The 20% increase in power generation from nonconventional renewable energy sources will add to 37% (2015) of conventional hydropower generation and will ensure that a substantial portion of electricity is produced by clean energy sources in the future. Sri Lanka's Nationally Determined Contributions target reducing Green House Gas emissions against business-as-usual scenario (base year 2013) by 20% (4% unconditionally and 16% conditional) in the energy sector through renewable energy development and energy efficiency improvement.

The proposed project will contribute to the government's goal of expanding access to electricity, developing sustainable clean energy and improving the power generation mix in the country. It will support the government program of increasing clean power generation from solar energy. The project is consistent with the interim Country Partnership Strategy for Sri Lanka of the Asian Development Bank (ADB). It builds on previous ADB interventions focused on supporting transmission and distribution investments to expand access to clean and reliable electricity, and renewable energy development.

Impact

Access to clean and reliable power supply in Sri Lanka increased by 2025

Project Outcome
Description of Outcome

Clean power generation enhanced.

Progress Toward Outcome The project loan L3571 (Original amount $50.00 million) was approved on 26 September 2017, and was signed on 18 September 2018 and effective on 25 September 2018. The Project provides long-term debt financing for installation of rooftop solar PV power generation systems in Sri Lanka. The credit line is managed by the Department of Development Finance, Ministry of Finance, Economy, and Policy Development (MoF). Funds are channeled to the beneficiaries through selected Participating Financial Institutions (PFI)._Technical support provided by Sri Lanka Sustainable Energy Authority (SLSEA), CEB and LECO. Project website was launched, www.rooftopsolar.lk which includes a solar PV calculator as a guide to potential residential customers. As of today the total disbursed is $50 million.
Implementation Progress
Description of Project Outputs

Debt funding for the rooftop solar power generation increased.

Rooftop solar market infrastructure and bankable subproject pipeline developed.

Capacity and awareness of stakeholders, including the MOFMM, PFIs, and commercial and domestic sector customers, increased.

Status of Implementation Progress (Outputs, Activities, and Issues)

Achieved 70.92 MW_

Geographical Location Nation-wide
Safeguard Categories
Environment FI-C
Involuntary Resettlement FI-C
Indigenous Peoples FI-C
Summary of Environmental and Social Aspects
Environmental Aspects Not Applicable
Involuntary Resettlement Not Applicable
Indigenous Peoples Not Applicable
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services not applicable
Procurement not applicable
Responsible ADB Officer Haputhanthri, Dinuk P.
Responsible ADB Department South Asia Department
Responsible ADB Division Sri Lanka Resident Mission
Executing Agencies
Ministry of Finance
Timetable
Concept Clearance 17 May 2017
Fact Finding 16 May 2017 to 26 May 2017
MRM 25 Jul 2017
Approval 26 Sep 2017
Last Review Mission -
Last PDS Update 16 Dec 2022

Loan 3571-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Sep 2017 18 Sep 2018 25 Sep 2018 30 Jun 2022 - 30 Jun 2022
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 59.80 Cumulative Contract Awards
ADB 50.00 14 Dec 2022 50.00 0.00 100%
Counterpart 9.80 Cumulative Disbursements
Cofinancing 0.00 14 Dec 2022 50.00 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory

TA 9389-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Sep 2017 30 Nov 2017 30 Nov 2017 31 Oct 2019 25 Sep 2022 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 1,250,000.00 0.00 0.00 0.00 0.00 1,250,000.00 14 Dec 2022 1,063,850.31
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Unsatisfactory Unsatisfactory Unsatisfactory Unsatisfactory Unsatisfactory Unsatisfactory

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Environmental Assessment and Audit Individual - Consulting Closed 26 Mar 2022 01 Apr 2022
Gender Finance Expert (Energy, National) Individual - Consulting Closed 09 Mar 2022 18 Mar 2022
Financing expert (Energy) (international) Individual - Consulting Closed 09 Mar 2022 18 Mar 2022
Information Technology Specialist Individual - Consulting Closed 12 Jun 2021 18 Jun 2021
Certification Technical Specialist Individual - Consulting Closed 12 Jun 2021 18 Jun 2021
Project Implementation Specialist Individual - Consulting Closed 11 Feb 2021 17 Feb 2021
Implementation Support for Rooftop Solar Power Generation Project Firm - Consulting Closed 12 Aug 2017 10 Sep 2017

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Capacity Development Technical Assistance 9389 20 Feb 2018 DFCC Consulting (Pvt) Ltd(SRI LANKA) in association with MERCADOS ENERGY MARKETS INTERNATIONAL,S.A.(SPAIN) | 73/5 Galle Road, Colombo 3 00300 Sri Lanka *** No Executing Agency for this TA *** 993,745.00

Procurement Plan

None currently available.