ADB, ENGIE SA Partner to Build 400 MW Solar Powerplant in Gujarat, India

ON 07/05/2024 AT 07 : 57 AM

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.

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.