ADB finances modernisation of Meghalaya power distribution network
The Asian Development Bank has approved a $132.8 million loan to improve power quality and upgrade the power distribution network in India’s northeastern state of Meghalaya.
The project will construct 23 substations; renovate and modernize 45 substations, including the provision of control room equipment and protection systems; install and upgrade 2,214km 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 that will 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.
Although Meghalaya has achieved 100% electrification, the state’s per capita electricity consumption of 832 kilowatt-hours (kWh) is low compared to the national average of 1,122kWh 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 Distribution networks are overloaded and substations in rural areas use outdated technology, resulting in high aggregate technical and commercial losses.
