ADB provides Engie with long-term loan for 400-MW Indian solar project – Renewables Now
The Asian Development Bank (ADB) has agreed a long-term local currency loan with French utility Engie SA (EPA:ENGI) for the construction and operation of a 400-MW solar power plant in India.
ADB said on Thursday it acted as the mandated lead arranger for the INR-14.6-billion loan (USD 174.8m/EUR 162.5m), with ADB and Asian Infrastructure Investment Bank each providing INR 7.3 billion.
Engie launched construction of the solar project, which is located in Surendranagar District, Gujarat, in November 2023. State-owned electricity distribution company Gujarat Urja Vikas Nigam Limited will be the sole offtaker.
The solar park is expected to generate an average of 805 GWh annually over the next 25 years. It will support India-based manufacturers as the solar panels will use locally produced bifacial photovoltaic (PV) power modules, ADB said.
The project will also support India’s ambition for at least 500 GW non-fossil fuel energy capacity by 2030.
“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 ADB director general for private sector operations Suzanne Gaboury. “This project exemplifies how ADB, as the region’s climate bank, supports the private sector in developing renewable energy projects through long-term local currency financing typically unavailable in local capital markets,” Gaboury added.
This is the second project that ADB has financed for Engie in India after a loan in 2020.
The French company now has a 1.1-GW operational portfolio in India, of which 220 MW is wind and the rest is solar.
(INR 1 = USD 0.012/EUR 0.011)
Choose your newsletter by Renewables Now. Join for free!
This post was originally published on 3rd party site mentioned in the title of this site
