The Asian Development Bank (ADB) and the ENGIE group have signed a long-term local currency loan agreement to construct and operate a 400-megawatt solar photovoltaic power plant in Surendranagar District, Gujarat, India.
ADB was the mandated lead arranger for the entire loan totaling 14.6 billion Indian rupees (approximately $175.9 million) with ADB and Asian Infrastructure Investment Bank both providing 7.3 billion Indian rupees. The project will support the Government of India's target of achieving at least 500 gigawatts of nonfossil 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.'
This project is the second project that ADB has financed for the Engie group in India, following the financing of the group's flagship project in India in 2020, and exemplifies our focus on mobilizing long-term financing from partner organizations.
The solar panels will be constructed using locally produced bifacial photovoltaic power modules, thereby diversifying the solar module supply chain and supporting India-based manufacturers. 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 vehicle owned by the ENGIE group, will implement the project, while state-owned electricity distribution company Gujarat Urja Vikas Nigam Limited will be the sole offtaker. ADB has been supporting the development of renewable energy in India since 2007 and has financed several independent solar power producers.
'In collaboration with ADB, we're bringing a landmark 400-megawatt solar project to Surendranagar, Gujarat, marking a significant stride in India's clean energy journey,' said ENGIE India CEO and Country Manager Amit Jain. 'This venture not only aligns with our green power goals but also catalyzes local job creation, reinforcing our pledge to India's nonfossil fuel future, firming our commitment to India's energy transition.'
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, comprising 220 megawatts of wind and the remainder in solar.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members-49 from the region.
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