Gujarat, Jul 5 (KNN) In a significant move towards sustainable energy development in India, the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) have joined forces to finance a large-scale solar power project in Gujarat.

The project, led by the ENGIE group, marks a substantial step in India's journey towards its ambitious renewable energy goals.

The 400-megawatt solar photovoltaic power plant, to be located in Surendranagar District, Gujarat, will be funded through a USD 175.9 million long-term local currency loan.

This financing package, equally split between ADB and AIIB, with ADB acting as the lead arranger, underscores the growing international support for India's green energy transition.

ENGIE's subsidiary, Enren Energy Private Limited, will spearhead the project's implementation. The plant is expected to generate an impressive 805 gigawatt-hours of electricity annually over a 25-year period.

This output translates to a reduction of approximately 662,441 tons of carbon dioxide emissions each year, highlighting the project's significant environmental impact.

A notable aspect of this venture is its commitment to local manufacturing. The solar panels will utilise locally produced bifacial photovoltaic power modules, aligning with India's push for domestic production in the renewable energy sector.

The project has secured a power purchase agreement with Gujarat Urja Vikas Nigam Limited, a state-owned electricity distribution company, ensuring a stable market for the generated power.

This solar plant is poised to play a crucial role in India's ambitious target of achieving at least 500 gigawatts of non-fossil fuel energy capacity by 2030. It represents a concrete step towards reducing the country's carbon footprint and diversifying its energy mix.

For ENGIE, this marks their second major solar project in India financed by ADB, following their flagship project in 2020.

This continued collaboration indicates growing investor confidence in India's renewable energy sector and the country's commitment to sustainable development.

(KNN Bureau)