The Asian Development Bank (ADB) and 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 totalling 14.6 billion rupees (US$175.9 million) with ADB and the Asian Infrastructure Investment Bank (AIIB) providing 7.3 billion rupees each. The project will support the Indian government’s target of achieving at least 500 gigawatts of 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," says Suzanne Gaboury, ADB‘s director general for private sector operations.

"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 is the second project that ADB has financed for Engie in India, following the financing of the group’s flagship project in the country in 2020.

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 tonnes of carbon dioxide emissions per year.

Enren Energy Private Limited, a special-purpose vehicle owned by Engie, will implement the project, while state-owned electricity distribution company Gujarat Urja Vikas Nigam 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 400MW solar project to Surendranagar, Gujarat, marking a significant stride in India’s clean energy journey,” says Engie India chief executive officer 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 non-fossil fuel future, firming our commitment to India’s energy transition.”

Engie is a global leader in low-carbon energy and services, with operations in 31 countries. In India, Engie’s portfolio includes 1.1GW of operational projects, comprising 220MW of wind and the remainder in solar.