he Asian Development Bank (ADB) has unveiled two major renewable energy financing initiatives across South and Southeast Asia, supporting large-scale solar deployment, energy storage adoption and clean energy transition in emerging economies.
ADB has approved a US$850 million loan to finance the second phase of reforms for India’s flagship residential rooftop solar programme, namely the Accelerating Affordable and Inclusive Rooftop Solar Systems Development Program. The funding underpins India’s Pradhan Mantri Surya Ghar: Muft Bijli Yojana (PMSGMBY) scheme, which aims to install rooftop photovoltaic (PV) systems for 10 million low- and middle-income households and add 30 GW of residential solar capacity by the 2027 fiscal year.
Following the first subprogram approval in November 2025 that established national policy, regulatory, financial and digital frameworks for rooftop solar expansion, the second subprogram focuses on on-the-ground implementation. It targets lowering upfront installation costs, supporting at least 3.5 million residential rooftop PV installations, optimizing digital application and monitoring workflows, and boosting participation from power distribution companies and private developers.
The comprehensive reform package also strengthens grid readiness, expands inclusive financing channels, promotes domestic solar manufacturing, advances energy storage deployment, and standardizes PV module and battery waste recycling mechanisms. Additional initiatives cover model solar village construction, distributed solar demonstration projects and improved vendor supervision systems. Industry data from JMK Research shows India’s rooftop solar sector achieved 6.4 GW of new installations recently, representing a 104% year-on-year surge.
In a separate landmark deal, an ADB-led international consortium has reached financial close on Timor-Leste’s first utility-scale solar-plus-storage project, marking a pivotal breakthrough for the country’s renewable energy development.
Developed by Manatuto Renewables Power with a total investment of US$85.7 million, the project is situated on 350 hectares of state-owned land in Manatuto Municipality. It comprises a 73.7 MWac grid-connected solar PV plant, an 80.2 MWh battery energy storage system (BESS) and supporting transmission infrastructure. Power generated by the facility will be supplied to Timor-Leste’s state-owned utility EDTL under a 25-year power purchase agreement (PPA).
The multi-source financing package includes senior debt from ADB, the World Bank Group’s International Finance Corporation (IFC) and the Japan International Cooperation Agency (JICA), alongside substantial concessional financing from ADB’s LEAP2 fund, JICA, the Government of Canada and the World Bank Group’s development programmes. The project was competitively procured under ADB’s transaction advisory for EDTL, and awarded to a consortium of EDF Power Solutions and ITOCHU Corporation’s I-Environment Investments Pacific. The World Bank Group served as the lead debt financing arranger.
