Asian Development Bank approves solar energy loans for Bhutan and Sri Lanka

The Asian Development Bank (ADB) approved a US$160 million loan to support Bhutan’s Solar Farm Expansion Project, which will add at least 310 MW of utility‑scale solar capacity through three farms in Bumthang and Lhuentse. The initiative includes Bhutan’s first private‑majority public‑private partnership, involving Druk Green Power Corporation and Tata Power Renewable Energy, and aims to reduce winter electricity deficits, lower costly imports and diversify the country’s renewable‑energy mix.

Separately, ADB announced a US$35 million financing package for Sri Lanka, combining concessional loans and grants to accelerate rooftop solar deployment across households and businesses. The funding is intended to cut reliance on imported fossil fuels, lower electricity bills, improve grid resilience and help the island meet its renewable‑energy targets.

Both projects reflect ADB’s continued focus on expanding clean‑energy infrastructure in South Asia, targeting greater energy security and a shift away from carbon‑intensive power sources.