SHILLONG: Asian Development Bank (ADB) has approved a $132.8 million loan to improve power quality and upgrade the power distribution network in Meghalaya, an official statement issued on Tuesday said.
Despite Meghalaya achieving 100 percent electrification, the state’s per capita electricity consumption of 832 kilowatt-hours (kWh) is low compared to the national average of 1,122 kWh in 2017, and remote rural areas in the state suffer from frequent power interruptions.
“Distribution networks are overloaded and substations in rural areas use outdated technology, resulting in high aggregate technical and commercial (AT&C) losses,” the statement said.
Sources confirmed that this is the first loan by ADB to augment the power sector in the state.
The Centre and the Meghalaya government has embarked on a joint initiative in 2015 – “24×7 Power For All Meghalaya” to provide uninterrupted, quality, reliable, and affordable power supply to all electricity consumers.
“This project fully supports Meghalaya’s Power for All initiative in providing quality electricity 24 hours, seven days a week to households, industries, businesses, and the public. By modernising the distribution network, the project will improve the operational efficiency of the distribution system and the financial sustainability of distribution business in the state,”
said ADB senior energy specialist for South Asia, Jaimes Kolantharaj.
“Improving access to electricity and creating economic opportunities in rural areas will help address poverty, promote rural development, and reduce inequality,” Kolantharaj said.
The project will construct 23 sub-stations; renovate and modernise 45 sub-stations, including the provision of control room equipment and protection systems; install and upgrade 2,214 kilometres of distribution lines and associated facilities covering three out of the six circles in the state.
It will replace antiquated electromechanical meters with smart meters, which will benefit about 180,000 households.
The loan will be supplemented by a $2 million grant from ADB’s Japan Fund for Poverty Reduction that will finance mini-grids to improve power quality and support income generation, especially for women and other socially disadvantaged groups, using renewable energy sources in three villages and three schools.
The project will help develop a distribution sector roadmap and a financial roadmap for the Meghalaya Power Distribution Corporation Limited (MePDCL).
These road maps will strengthen the capacity of MePDCL to operate and manage the distribution networks.
Power Minister, James Sangma expressed happiness over the approval.
“The project fully supports ‘Meghalaya’s Power for All’ initiative in providing electricity, improving the operational efficiency of distribution system and financial sustainability of the Department,” Sangma said.