ADB to provide $390m for clean energy projects in India
The Asian Development Bank (ADB) has approved a new $390m financing package for ReNew Power, an Indian independent power producer (IPP) company that generates reliable and efficient non-conventional power for developing renewable energy projects in India.
ADB has approved this loan as part of its efforts to boost private sector-led infrastructure development in Asia and the Pacific and boost support for clean energy.
The loan approved would assist seven special purpose vehicles owned by ReNew Power, the first of which has also been signed.
It is reported to be the first transaction in its financing plans resources from ADB as well as Leading Asia's Private Sector Infrastructure Fund (LEAP), a funding arrangement provided by Japan International Cooperation Agency (JICA) and is administered by ADB.
ADB Private Sector Operations Department director general Michael Barrow said: “We strongly believe in ReNew Power’s potential and execution capabilities.
“The company has shown tremendous growth over the last few years and we are pleased to provide a further boost to help it bridge the gap between India’s current and growing energy needs and to reduce the country’s carbon footprint.”
The financial assistance offered by ADB will be used by ReNew Power for developing photovoltaic (PV) solar power projects with combined capacity of 398MW in Jharkhand and Telangana.
The loan will also be used by the company towards wind power projects with combined capacity of 311MW in Andhra Pradesh, Gujarat, Karnataka and Madhya Pradesh.
Combined, the projects are expected to generate 1,400GW hours of electricity and will help in avoiding nearly 1.2 million tons of carbon dioxide emissions annually. The plants will be commissioned by December this year.
Image: ADB approves $390m for the developing clean energy projects in India. Photo: courtesy of Asian Development Bank.