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, as the mandated lead arranger, secured the entire loan of 14.6 billion Indian rupees (approximately $175.9 million), with ADB and the Asian Infrastructure Investment Bank each contributing 7.3 billion Indian rupees. This project aligns with the Government of India’s goal of achieving at least 500 gigawatts of nonfossil fuel energy capacity by 2030.
Suzanne Gaboury, ADB Director General for Private Sector Operations, emphasized the importance of private sector involvement in combating climate change: “The private sector’s engagement in the fight against climate change is pivotal for achieving a clean energy transition in Asia and the Pacific. 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 initiative marks the second project ADB has financed for the ENGIE group in India, following the financing of ENGIE’s flagship project in 2020. It highlights ADB’s focus on mobilizing long-term financing from partner organizations.
The solar panels for the plant will be constructed using locally produced bifacial photovoltaic power modules, supporting India-based manufacturers and diversifying the solar module supply chain. The plant is expected to generate an average of 805 gigawatt-hours annually over the next 25 years, reducing nearly 662,441 tons of carbon dioxide emissions per year.
The project will be implemented by Enren Energy Private Limited, a special-purpose vehicle owned by the ENGIE group. Gujarat Urja Vikas Nigam Limited, a state-owned electricity distribution company, will be the sole offtaker. ADB has been supporting renewable energy development in India since 2007, financing several independent solar power producers.
ENGIE India CEO and Country Manager Amit Jain remarked, “In collaboration with ADB, we’re bringing a landmark 400-megawatt solar project to Surendranagar, Gujarat, marking a significant stride in India’s clean energy journey. This venture not only aligns with our green power goals but also catalyzes local job creation, reinforcing our pledge to India’s nonfossil fuel future, firming our commitment to India’s energy transition.”
ENGIE group, a global leader in low-carbon energy and services, operates in 31 countries and boasts a portfolio in India that includes 1.1 gigawatts of operational projects, comprising 220 megawatts of wind and the remainder in solar.
ADB remains committed to fostering a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while striving to eradicate extreme poverty. Established in 1966, ADB is owned by 68 members, with 49 from the region.
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