The International Finance Corporation (IFC) has committed $105 million to finance a 550 MW solar power project in Bikaner, Rajasthan, being developed by Brookfield Asset Management. The funding, provided through long-term non-convertible debentures, will be allocated to the project’s special purpose vehicles.
Following IFC’s commitment, Brookfield will deliver solar power to commercial and industrial consumers across India at competitive tariffs through long-term power purchase agreements (PPAs), contributing significantly to the nation’s decarbonisation goals.
This investment marks IFC’s first in Asia and the Pacific using a hybrid offtake structure. This structure allows the project to sell generated power to C&I consumers under long-term corporate PPAs and through the merchant market via exchange. The solar project will be integrated into India’s green energy corridor via the inter-state transmission system.
“Through our 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,” said Imad N. Fakhoury, IFC’s Regional Director for South Asia. The solar plants are projected to annually mitigate greenhouse-gas emissions by 8,04,408 tonnes of CO2, equivalent to taking over 1,73,680 cars off the road each year.
India is leading a green transition in the energy sector, having pledged to increase its non-fossil fuel capacity to 500 GW by 2030. The country’s renewable energy sector has attracted about $10 billion in annual investments between 2017 and 2022 and is expected to generate annual investments of $25 billion through 2030.
“With a portfolio of over 25 GW of renewable power assets in operation or in development across leading platforms in the country, we look forward to capitalising on the scaled transition opportunities on offer in the country,” said Nawal Saini, Managing Director, Renewable Power & Transition, Brookfield.
Since 2010, IFC has invested $2.79 billion in multiple projects to strengthen the renewable energy and energy efficiency sectors in India.
