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ADB, ENGIE inked Rs 466-cr loan agreement for developing Raghanesda Solar Project in Gujarat

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ADB, ENGIE sign ₹466-crore loanOn September 10, 2020, as a part of Asian Development Bank’s  (ADB) ongoing support to India’s renewable energy sector, a long term loan agreement of Rs 4.66 billion (about $65.5 million) was inked between ADB and the ENGIE group to construct and operate a 200-megawatt alternating current solar photovoltaic-based power plant at Raghanesda Solar Park in Gujarat. 

  • The agreement was signed by Principal Investment Specialist at ADB’s Private Sector Operations Department Mayank Choudhary and ENGIE group’s Head of Acquisitions, Investments, and Financial Advisory Phuntsok Wangyal.
  • The project will be implemented by Electro Solaire Private Limited (ESPL), a special purpose vehicle owned by ENGIE with expected commission in the first half of 2021.

ESPL is collaborating with the Gujarat Government for its construction and has signed a power purchase agreement for 25 years with the state government.

How will this project be beneficial to India?

Once commissioned, the power plant is expected to generate about 440 gigawatt-hours of electricity annually. This will help avoid nearly 385,000 tons of carbon dioxide emissions a year, which would otherwise have been generated by conventional fossil fuel plants. 

It will help India to meet its targets for non-fossil fuel-based electric power generation.

Point to be noted:

– Since 2007, ADB has supported the development of renewable energy in India, At that time it financed the first set of wind projects under the independent power producer (IPP) model. It also financed solar independent power producers (IPPs) by assisting projects under the National Solar Mission and various state policies.

Recent Related News:

On April 29, 2020, ADB approved a loan worth $346 million (around Rs 2,616 crore) for the government of Maharashtra to provide reliable power connection in rural areas of the state, where the labour force is mostly engaged in agriculture and related activities.

About ENGIE group:

ENGIE group is a global leader in low-carbon energy and services, offering solutions in its key businesses. Its portfolio includes 810 megawatts (MW) peak of solar PV (photovoltaic) and 280 MW of wind power in India.
Headquarter– La Defense, France
Chairman– Jean-Pierre Clamadieu

About Asian Development Bank (ADB):
Headquarters– Mandaluyong, Philippines
Membership– 68 countries
President– Masatsugu Asakawa