The Asian Development Bank (ADB) has approved loans of up to $175 million for private renewable energy development to Mytrah Energy (India) Ltd (MEIL) to help it develop wind and solar power projects, which will generate up to 1,200 gigawatt-hours of clean energy a year.
The projects being financed include wind power projects in Rajasthan, Madhya Pradesh, Andhra Pradesh, and Karnataka, with combined capacity of 476 megawatts (MW), and photovoltaic solar power projects in Telangana and Punjab with capacity of 100 MW. Bringing this clean power on stream is expected to help avoid nearly 1.2 million tons of carbon dioxide emissions a year from 2018, which would otherwise have been generated by conventional fossil fuel plants.
“MEIL has a strong track record of developing renewable energy projects and this financing will allow it to expand its capacity, resulting in substantial benefits including reduced fossil fuel use and strengthened energy security for India,” said Mayank Choudhary, Senior Investment Specialist in ADB’s Private Sector Operations Department. “It also supports ADB’s strategy of stepped up financing for renewable energy and increased support for private investment in the sector.”
The project will see the development and commissioning of the plants by April 2017. The generated electricity will be supplied to respective state power distribution companies under long term power purchase agreements.
MEIL, one of India’s fastest growing independent power producers from renewable sources, is a step down subsidiary of the London Stock Exchange-listed Mytrah Energy Limited. It has 10 operating sites spread over six states with existing wind power capacity of 616.6 megawatts. It ventured into solar power in 2015 and is targeting total renewable energy capacity of 1,000 MW over the next 12 months.
ADB has been supporting the development of renewable energy in India since 2007, when it financed the first set of wind projects under the IPP model. ADB has subsequently financed solar IPPs by assisting projects under the National Solar Mission and various state policies. As part of its commitment announced by ADB in September 2015 to scale up clean energy financing to $6 billion a year by 2020, ADB will seek to sustain its private sector activities, particularly in major renewable energy markets such as India.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB in December 2016 will mark 50 years of development partnership in the region. It is owned by 67 members—48 from the region. In 2015, ADB assistance totaled $27.2 billion, including cofinancing of $10.7 billion.