ADB providing US$45 million financing for 19MW of solar irrigation in Bangladesh

Irrigation consumes about 4.58% of the total electricity generation in the South Asian country. Credit: Flickr: Helena Wright

The Asian Development Bank (ADB) is providing a US$20 million loan and a US$25.44 million grant to support off-grid solar PV pumping for agricultural irrigation in Bangladesh to replace expensive diesel-based systems.

The funding will support the installation of at least 2,000 solar pumping systems in off-grid areas with an estimated 19.3MW of solar capacity.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Irrigation consumes about 4.58% of the total electricity generation in the South Asian country, but farmers with electric pumps face persistent power outages, forcing them to operate at night when grid electricity demand is lower and power outages are less likely. In off-grid rural areas, reliance on expensive diesel for pumping is the only option. An estimated 11.06 million farmers are using diesel to operate their pumps.

The grant will be used to lower the high upfront cost of using solar pumping systems for agricultural irrigation, making them more affordable to low-income farmers. Technical and skills training will be provided to support jobs and livelihood opportunities with a focus on women.

The loan comes from an ADB Power System Efficiency Improvement Project and the grant financing from the Scaling up Renewable Energy in Low Income Countries Program under the Strategic Climate Fund, and the Clean Energy Fund for Output-based Aid under the ADB-administered Clean Energy Financing Partnership Facility.

ADB senior energy specialist Aiming Zhou said: “High diesel costs for irrigation are not sustainable and affordable for small farmers in rural Bangladesh. In an area where grid electricity is not available, using solar energy for irrigation is a promising alternative to diesel-based pumping systems. The project will help meet diverse energy demands, improve livelihoods because of less pollution, and result in savings from the reduction in diesel use for irrigation and other agricultural activities.”

Proinso UK and Joules Power are due to complete Bangladesh's first utility-scale PV plant this month.

Read Next

July 18, 2024
Pertamina NRE has signed a memorandum of understanding with state-owned energy company Coal Power Generation Company Bangladesh Limited to build the PV project.
July 18, 2024
The financing will be offered to two banks, as they will provide loans to developers and end-users to install rooftop solar systems.
September 25, 2023
JA Solar has signed an agreement with the Paramount Group to provide PV modules to its under-construction 150MW solar project in Bangladesh.
April 17, 2023
The Global Energy Alliance for People and Planet (GEAPP) has announced a plan to establish the GEAPP Energy Access and Transition Trust Fund, offering US$35 million to accelerate the clean energy transition and access in five Asian countries. 
November 3, 2022
The ADB has signed a transaction advisory service mandate with utility Électricité du Cambodge to support the development of 2GW of solar power in Cambodia.
October 25, 2022
The Asian Development Bank (ADB) has approved a US$18.26 million financing package for the construction of Bhutan’s first utility-scale solar PV plant.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
July 31, 2024
1:00 PM (BST) / 2:00PM (CEST)
Solar Media Events
September 24, 2024
Warsaw, Poland
Solar Media Events
September 24, 2024
Singapore, Asia
Solar Media Events
October 8, 2024
San Francisco Bay Area, USA