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IFC commits $105 million for Brookfield’s Bikaner solar power project
- Investments in the energy transition space has gained momentum with the Union government setting up an ambitious plan to achieve 500 GW of renewable energy capacity by 2030. The country’s renewable energy sector is expected to generate annual investments of $25 billion through 2030.
New Delhi: International Finance Corporation (IFC), the private sector lending arm of the World Bank, has pledged $105 million to part-finance a 550 MWp solar power project in Bikaner, Rajasthan, being developed by Brookfield Asset Management.
IFC will make the investment through long-term non-convertible debentures allocated to the project's special purpose vehicles, which are implementing the project.
Megawatt peak (MWp) refers to the maximum power output capacity of a solar or wind power project that varies depending on wind speed and strength of sunlight.
A joint statement from IFC and Brookfield said that following the commitment, Brookfield will provide solar power to commercial and industrial (C&I) consumers across India at more competitive tariffs through long-term power purchase agreements (PPA) and contribute to the nation’s decarbonization goals.
Read this: Investments in India have benefitted climate change, housing projects: IFC
"This is IFC’s first investment in Asia and the Pacific using an innovative hybrid offtake structure where the project sells the power generated to C&I consumers under long-term corporate PPAs and merchant market through exchange. The project will be connected to the inter-state transmission system section of India’s green energy corridor," said the statement.
Imad N. Fakhoury, IFC's regional director for South Asia, said that through the partnership with Brookfield, IFC aims to facilitate the broader uptake of clean energy by demonstrating the viability of large-scale renewable energy generation, and sale to pan-India corporate and industrial clients, through the interstate transmission system (ISTS).
“The novel procurement options underscore the role of hybrid transactions in scaling up investments in renewables, increasing market competitiveness, and offsetting the energy sector’s carbon footprint—key to achieving India’s climate goals,” Fakhoury added.
Since 2010, IFC has invested $2.79 billion in multiple projects to strengthen the renewable energy and energy efficiency sectors in India.
“The corporate appetite for clean energy is growing in India, 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," said Nawal Saini, managing director, renewable power & transition, Brookfield.
Also read: New RE park scheme may provide subsidies for floating solar projects
Saini added that with a portfolio of over 25 GW of renewable power assets in operation or in development across platforms in the country, Brookfield looks forward to capitalizing on the transition opportunities in the country.
Investments in the energy transition space has gained momentum with the Union government setting up an ambitious plan to achieve 500 GW of renewable energy capacity by 2030.
The country’s renewable energy sector is expected to generate annual investments of $25 billion through 2030. Of this, around 20% is estimated to be directed towards the C&I and merchant market.
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First Published:17 Jun 2024, 08:11 PM IST
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