Rooftop Solar Aggregation and Virtual Net Metering Project (ADB-58280-001)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Sri Lanka
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
Government of Sri Lanka
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant, Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 35.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 35.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ ADB website

Updated in EWS Mar 30, 2026

Disclosed by Bank Mar 6, 2026

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated by the ADB, the project's overall objective is twofold: to increase Sri Lanka's resilience to climate change by supporting the achievement of its Nationally Determined Contributions targets related to reducing greenhouse gas emissions in electricity production through renewable energy interventions, and to alleviate the economic pressure caused by high tariff rates for vulnerable low-usage consumers under the 'General Purpose' category. The project aims to enable these consumers, who lack financing and/or rooftop space, to reduce their energy bills through a virtual net-metering mechanism using rooftop solar PV technology installed and owned by the two Sri Lankan utilities.

Sri Lanka, an island nation with a population of 22 million in the middle-income category, achieved 100% household electrification in 2016 and currently has a peak demand of about 3,000 megawatts (MW). Despite having around 1,800 MW of hydropower capacity (large and micro), two-thirds of its electricity is generated from thermal power plants. Hydropower generation is significantly impacted by high seasonal variation and climate change. As of May 2024, rooftop photovoltaic (PV) generation contributes about 7% to the total electricity supply. The country's heavy reliance on imported fuel, high inflation rates, and the depreciation of the Sri Lankan rupee have severely impacted its fiscal position and economic stability, leading to its first economic default in May 2022, causing severe power shortages due to insufficient fuel imports.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The ADB categorized the project risks as follows:

Environment - B
Involuntary Resettlement - C
Indigenous Peoples - C

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Ceylon Electricity Board Contractor Energy

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

ADB Team Leader:

Jaimes Kolantharaj
Email: jkolantharaj@adb.org 

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.adb.org/forms/request-information-form

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at: https://www.adb.org/site/disclosure/appeals

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.

How it works

How it works