The Asian Development Bank (ADB) has signed a long-term local currency loan with the ENGIE Group to support the construction and operation of its 400 MW solar power plant in India's Gujarat.
The INR 14.6 billion ($175.9 million) loan was arranged by the ADB as lead arranger. Both ADB and the Asian Infrastructure Investment Bank (AIIB) shelled out INR 7.3 billion each for this package.
France's ENGIE will deploy the proceeds to execute the project in Gujarat's Surendranagar district. The project will be equipped with locally produced bifacial solar PV modules that will generate an average of 805 GWh annually over the next 25 years.
ENGIE's special purpose vehicle (SPV) Enren Energy Private Limited will implement the project. Local state-owned electricity company Gujarat Urja Vikas Nigam Limited (GUVNL) will be the sole offtaker of the 400 MW capacity.
"This venture not only aligns with our green power goals but also catalyzes local job creation, reinforcing our pledge to India's non-fossil fuel future, firming our commitment to India's energy transition," said ENGIE India CEO and Country Manager Amit Jain.
ENGIE has 1.2 GW of operational low-carbon operational energy capacity in India, comprising 220 MW of wind and remaining solar.