The Asian Development Bank (ADB) has agreed to lend up to INR 4.66 billion (USD 63.3m/EUR 53.6m) to French utility Engie SA for the construction of a 200-MW solar farm in the Indian state of Gujarat.
ADB, together with another international lender, will lend all the financing needed for the Raghanesda solar park, the bank said last week.
The project will be implemented by Electro Solaire Private Limited, a special purpose vehicle owned by Engie. The company has inked a 25-year power purchase agreement (PPA) for the solar farm’s output with the state government.
The facility is due to become operational in the first half of 2021, generating about 440 GWh of power and saving 385,000 tonnes of carbon dioxide (CO2) every year.
Engie’s Indian portfolio consists of 810 MWp of solar capacity and 280 MW of wind capacity.
“The project will enable the Engie group to expand its renewable energy capacity in India and send positive signals to global investors to continue supporting the growth of renewable energy in India,” Mayank Choudhary, principal investment specialist at ADB’s private sector operations department, commented.