Hyderabad: The Asian Development Bank has sanctioned loans of up to $175 million to Mytrah Energy India Ltd to back the power producer’s new wind and solar projects, which will generate up to 1,200 gigawatt-hours of clean energy a year.
MEIL is one of India’s fastest growing independent power producers from renewable sources. It has wind power capacity of 616.6 megawatts. It got into solar power in 2015. It aims to achieve renewable energy capacity of 1,000 MW over the next year.
This “truly establishes funding visibility for our future projects," said Shirish Navlekar, the joint managing director and chief finance officer of Mytrah Energy.
The new ventures that got financing include wind power projects in Rajasthan, Madhya Pradesh, Andhra Pradesh and Karnataka, with a total capacity of 476 MW, and solar power projects in Telangana and Punjab with capacity of 100 MW.
The development comes at a time when India is looking to position itself as an emerging global powerhouse in solar energy. Prime Minister Narendra Modi has set a goal of expanding the country’s solar capacity to 100 gigawatts by 2020.
“This financing will allow the company to expand its capacity, resulting in substantial benefits including reduced fossil fuel use and strengthened energy security for India," said Mayank Choudhary, senior investment specialist in ADB’s private sector operations arm.
The investment is in sync with Manila-based ADB’s strategy to step up financing for renewable energy projects and increase support for private investment in the sector.