Half of the loan will fund a 30MW hydropower plant at Moragolla in Central Province and upgrade transmission lines as well as other infrastructure in areas including the northern and eastern provinces.
The run-of-the-river hydropower facility will generate an additional 97.7 million units of energy for the grid and reduce 72,300 tons of carbon dioxide (CO2) emissions per year.
ADB said the enhanced transmission lines will further reduce annual CO2 emissions by 98,400 tons.
The other half of the bank’s loan will help expand a 33kV medium-voltage network and build transmission lines to deliver power from two 100MW wind farms that are planned to be built in the northern province.
ADB principal energy specialist Mukhtor Khamudkhanov said: "The country’s heavy dependence on expensive imported petroleum oil hurts the economy, undermines energy security, and harms the environment.
"This loan will help Sri Lanka expand the use of renewable energy for power generation and have major benefits both for poor communities and the broader economy."
ADB said the program also supports Sri Lanka’s energy investment road map that is intended to increase the share of grid power generated from nonconventional renewable energy sources like wind power, solar power and mini-hydropower to 20% of the total by 2020.
