The International Finance Corporation on Monday committed $105 million, or about Rs 870 crore, to Brookfield’s Bikaner solar power project through long-term non-convertible debentures. The private sector financing arm of the World Bank Group said in a statement that these loans were earmarked for the project’s special purpose vehicles.
A 550-megawatt solar project in Rajasthan will help boost India’s renewable energy potential and support climate goals, the IFC said in a statement.
Through long-term power purchase agreements, Brookfield will provide solar power to commercial and industrial consumers in India at more competitive rates, contributing to the country’s decarbonization goals, it said.
According to the statement, this is IFC’s first investment in the Asia-Pacific region using an innovative hybrid offtake structure, where the project trades power generated to C&I consumers through long-term corporate PPAs and trade markets.
The project will be connected to the interstate transmission system section of India’s green energy corridor. Solar plants are expected to reduce greenhouse gas emissions by 8.04 lakh tonnes of CO2 every year, which is equivalent to removing about 1.74 lakh cars from the road every year.
India is leading the green transition in the power sector by committing to 500 gigawatts of non-fossil fuel capacity by 2030. The country’s renewable energy sector has attracted approximately $10 billion in annual investments between 2017 and 2022. It is expected to bring 25 billion dollars in annual investment by 2030.
It is estimated that about 20% of this is directed towards the C&I and merchant market.
“Through our partnership with Brookfield, IFC aims to facilitate the wider adoption of clean energy by demonstrating the viability of large-scale renewable energy generation and sale to pan-India corporate and industrial customers through the interstate transmission system,” Imad N Fakhoury on IFC South regional director for Asia said.
“With a portfolio of more than 25 GW of renewable energy assets in operation or under development across the country’s leading platforms, we look forward to taking advantage of the scale transition opportunities offered in the country,” said Nawal Saini, managing director of renewables and power and transition at Brookfield. he said.
Brookfield Asset Management Ltd. is a leading global alternative asset manager with over $925 billion in assets under management across renewable energy and transition, infrastructure, private equity, real estate and credit.
(Text inputs from PTI)