IFC commits $105m for solar power project in India

This will be through long-term non-convertible debentures.

The International Finance Corporation (IFC) said it is allocating $105m to partly finance the 550-megawatt peak (MWp) solar power project in Bikaner, Rajasthan being developed by Brookfield Asset Management, helping India boost renewable energy capacity.

In a statement, IFC said the financial boost will be through long-term non-convertible debentures allocated to the project's special purpose vehicles, which are implementing the project.

Following this development, Brookfield will provide solar power to commercial and industrial (C&I) consumers across India at more competitive tariffs through long-term power purchase agreements (PPAs) and contribute to the country’s decarbonisation goals, the institution said.

IFC said this is its first investment in Asia and the Pacific using a hybrid offtake structure where the project sells the power generated to C&I consumers under long-term corporate PPAs and merchant markets via exchange. 

The project will be connected to the inter-state transmission system section of India's green energy corridor. 

The solar plants are expected to annually cut carbon emissions by 804,408 tons, equivalent to taking over 173,680 cars off the road every year.

India has pledged to increase its non-fossil fuel capacity to 500 gigawatts ((GW) by 2030. 

Nawal Saini, managing director, Renewable Power & Transition at Brookfield, also noted that companies in India are becoming more interested in clean energy, with over 5 GW of renewable capacity added for the C&I sector in the last 12 months alone.

“By leveraging our operational expertise, we plan to continue to expand our renewable and energy transition footprint in India focusing on both state utility and C&I segments in the country. With a portfolio of over 25 GW of renewable power assets in operation or in development across leading platforms in the country we look forward to capitalising on the scaled transition opportunities on offer in the country," he added.