The Asian Development Bank (ADB), approved Rs 4,063 Million non-sovereign loan for Al Jomaih Energy and Water in order to develop 80 MW Solar Project at Gujarat.
This project is being developed as a response to GUVNL’s September 2020 tender to purchase 500 MW of Power from grid-connected solar projects. Al Jomaih Energy and Water Company was among the winners of the 500 MW auction.
ADB said that the project was in complete alignment with its Energy Policy, which prioritizes support for renewable energy development. This loan is designed to encourage inclusive economic growth as well as environmentally sustainable growth.
According to ADB, the project will diversify India’s energy mix and promote renewable energy. This aligns with the Government of India’s goal to achieve 500 gigawatts of renewable energy capacity, and to supply half of India’s electricity needs from renewable sources. This will help India reduce its carbon intensity by 45% before 2030.
ADB also stated that the project is in line with pillar 2/3 of ADB’s 2018-2022 India country partnership strategy.
Construction of the project is expected to start this year, with commissioning anticipated for 2030. GUVNL will purchase the power generated by the project under a 25-year power purchase agreement.