New Delhi [India], the Asian Development Bank (ADB) and ENGIE group have signed a long-term loan agreement to build and operate a 400-megawatt solar photovoltaic power plant in Surendranagar district in Gujarat, the bank Manila-based regional development agency said in a statement.
The ADB was the authorized lead arranger for the entire loan, totaling 14.6 billion Indian rupees (approximately $175.9 million), with the ADB and the Asian Infrastructure Investment Bank contributing 7.3 billion Indian rupees.
According to the statement, the project will support India's goal of achieving at least 500 gigawatts of non-fossil fuel energy capacity by 2030.
"Private sector engagement in the fight against climate change is critical to achieving a clean energy transition in Asia and the Pacific," said ADB Director General for Private Sector Operations Suzanne Gaboury.
"This project exemplifies how the ADB, as the region's climate bank, supports the private sector in the development of renewable energy projects through long-term financing in local currency that is not normally available in local capital markets."
This project is the second that the ADB finances for the Engie group in India, after financing the group's flagship project in India in 2020.
The solar panels will be built using locally produced bifacial photovoltaic power modules, thereby diversifying the solar module supply chain and supporting India-based manufacturers.
The release says the plant will generate an average of 805 gigawatt-hours annually over the next 25 years, avoiding nearly 662,441 tons of carbon dioxide emissions per year.
Enren Energy Private Limited, a special purpose entity owned by the ENGIE group, will implement the project, while state-owned electricity distribution company Gujarat Urja Vikas Nigam Limited will be the sole buyer. The ADB has supported the development of renewable energy in India since 2007 and has financed several independent solar energy producers.
"In collaboration with ADB, we will bring a landmark 400 megawatt solar project to Surendranagar, Gujarat, marking a significant step in India's clean energy journey," said Amit Jain, CEO and Country Manager, ENGIE India. "This venture not only aligns with our green energy goals, but also catalyzes local job creation, reinforcing our commitment to India's non-fossil fuel future and reaffirming our commitment to India's energy transition." .
The ENGIE group is a global leader in low-carbon energy and services, with operations in 31 countries. In India, ENGIE's portfolio includes 1.1 gigawatts of operational projects, of which 220 megawatts are wind and the rest solar.
At COP26 held in 2021, India as a whole committed to an ambitious five-party commitment called 'Panchamrit'. These included reaching 500 GW of non-fossil electricity capacity, generating half of all energy needs from renewables, and reducing emissions by 1 billion tonnes by 2030.
India also aims to reduce GDP emissions intensity by 45 percent. Finally, India commits to achieving net-zero emissions by 2070.
The ADB was the authorized lead arranger for the entire loan, totaling 14.6 billion Indian rupees (approximately $175.9 million), with the ADB and the Asian Infrastructure Investment Bank contributing 7.3 billion Indian rupees.
According to the statement, the project will support India's goal of achieving at least 500 gigawatts of non-fossil fuel energy capacity by 2030.
"Private sector engagement in the fight against climate change is critical to achieving a clean energy transition in Asia and the Pacific," said ADB Director General for Private Sector Operations Suzanne Gaboury.
"This project exemplifies how the ADB, as the region's climate bank, supports the private sector in the development of renewable energy projects through long-term financing in local currency that is not normally available in local capital markets."
This project is the second that the ADB finances for the Engie group in India, after financing the group's flagship project in India in 2020.
The solar panels will be built using locally produced bifacial photovoltaic power modules, thereby diversifying the solar module supply chain and supporting India-based manufacturers.
The release says the plant will generate an average of 805 gigawatt-hours annually over the next 25 years, avoiding nearly 662,441 tons of carbon dioxide emissions per year.
Enren Energy Private Limited, a special purpose entity owned by the ENGIE group, will implement the project, while state-owned electricity distribution company Gujarat Urja Vikas Nigam Limited will be the sole buyer. The ADB has supported the development of renewable energy in India since 2007 and has financed several independent solar energy producers.
"In collaboration with ADB, we will bring a landmark 400 megawatt solar project to Surendranagar, Gujarat, marking a significant step in India's clean energy journey," said Amit Jain, CEO and Country Manager, ENGIE India. "This venture not only aligns with our green energy goals, but also catalyzes local job creation, reinforcing our commitment to India's non-fossil fuel future and reaffirming our commitment to India's energy transition." .
The ENGIE group is a global leader in low-carbon energy and services, with operations in 31 countries. In India, ENGIE's portfolio includes 1.1 gigawatts of operational projects, of which 220 megawatts are wind and the rest solar.
At COP26 held in 2021, India as a whole committed to an ambitious five-party commitment called 'Panchamrit'. These included reaching 500 GW of non-fossil electricity capacity, generating half of all energy needs from renewables, and reducing emissions by 1 billion tonnes by 2030.
India also aims to reduce GDP emissions intensity by 45 percent. Finally, India commits to achieving net-zero emissions by 2070.
