The Asian Development Bank (ADB) has finalized a long-term local currency loan agreement with French utility Engie SA to support the construction and operation of a 400-MW solar power plant in India.
According to ADB, the bank acted as the mandated lead arranger for the INR 14.6 billion (USD 174.8 million/EUR 162.5 million) loan, with contributions from both ADB and the Asian Infrastructure Investment Bank (AIIB), each providing INR 7.3 billion.
Engie commenced construction of the solar project in Surendranagar District, Gujarat, in November 2023. The project, which will be solely backed by state-owned Gujarat Urja Vikas Nigam Limited, is expected to generate an average of 805 GWh annually over the next 25 years. It will utilize locally produced bifacial photovoltaic (PV) power modules, supporting India's domestic manufacturing capabilities.
Suzanne Gaboury, ADB's director general for private sector operations, emphasized the project's role in advancing climate goals: “The private sector's engagement in the fight against climate change is pivotal for achieving a clean energy transition in Asia and the Pacific. This project exemplifies how ADB, as the region's climate bank, supports the private sector in developing renewable energy projects through long-term local currency financing typically unavailable in local capital markets.”
This marks the second collaboration between ADB and Engie in India, following a previous loan agreement in 2020. Engie currently operates a 1.1-GW portfolio in India, comprising 220 MW from wind and the remainder from solar sources.
