Click it and Unblock the Notifications
The Asian Development Bank (ADB) announced on Thursday that it has arranged a loan of Rs 1,460 crore for the ENGIE group. This loan will be used to construct a 400-megawatt solar photovoltaic power plant in Surendranagar, Gujarat. The total loan amounting to Rs 14.6 billion, approximately USD 175.9 million, was arranged by ADB as the mandated lead arranger.
The project aligns with the Government of India's goal to achieve at least 500 gigawatts of non-fossil fuel energy capacity by 2030. ADB and the Asian Infrastructure Investment Bank each provided Rs 7.3 billion for this initiative. "The private sector's engagement in the fight against climate change is pivotal for achieving a clean energy transition in Asia and the Pacific," said Suzanne Gaboury, ADB Director General for Private Sector Operations.
Support for Renewable Energy Projects
This project highlights ADB's role as the region's climate bank, supporting private sector renewable energy projects through long-term local currency financing. Such financing is typically unavailable in local capital markets. The statement noted that this is the second project ADB has financed for the ENGIE group in India, following the financing of their flagship project in 2020.
The solar panels for this plant will be constructed using locally produced bifacial photovoltaic power modules. This approach diversifies the solar module supply chain and supports India-based manufacturers. The plant is expected to generate an average of 805 gigawatt-hours annually over the next 25 years.
Environmental Impact
The new solar power plant will help avoid nearly 662,441 tonnes of carbon dioxide emissions per year. This significant reduction in emissions underscores the project's contribution to combating climate change and promoting sustainable energy solutions.
By mobilising long-term financing from partner organisations, ADB aims to support more renewable energy projects like this one. The focus remains on developing sustainable infrastructure that can contribute to a cleaner environment and a robust energy sector.
This initiative not only supports India's renewable energy targets but also strengthens local manufacturing capabilities. The use of locally produced modules ensures that the benefits of this project extend beyond energy production to economic growth and job creation within India.
The collaboration between ADB, AIIB, and ENGIE exemplifies how international cooperation can drive significant progress in renewable energy development. Such partnerships are crucial for achieving global climate goals and ensuring a sustainable future for all.
Sign in with Google