ADB-Backed Solar Park Lights Up India's Commercial Users
- ADB provides loan to India's Fourth Partner Energy to fund 25-MW solar park, increasing innovative renewable energy production to 50.7 GW/yr & reducing CO2 emissions by 41,700 tonnes/yr. India's open access renewable energy policy encourages international financing for decarbonisation.
The Asian Development Bank (ADB) has signed a loan with Indian renewable energy company Fourth Partner Energy Pvt Ltd to finance the construction of a 25-MW solar park in the state of Tamil Nadu. The loan is worth up to INR 1.2 billion (USD 14.5m/EUR 13.4m) and the solar project is expected to produce about 50.7 GW of electricity a year, avoiding 41,700 tonnes of carbon dioxide emissions annually. India has a progressive open access renewable energy policy which allows a group of consumers to buy electricity directly from an independent power producer (IPP). Fourth Partner Energy is aiming for a 3.5-GW renewable energy target by 2025, and the ADB loan is expected to encourage international commercial financing to decarbonise the commercial and industrial sector.
What Impact Will ADB Loan have on India's Renewable Energy Capacity?
- The ADB loan will help Fourth Partner Energy reach their 3.5-GW renewable energy target by 2025.
- The loan will finance the construction of a 25-MW solar park in the state of Tamil Nadu, which is expected to produce up to 50.7 GW of electricity a year and avoid 41,700 tonnes of carbon dioxide emissions annually.
- The loan provides a much needed injection of funds for India's renewable energy sector, which is facing long delays in the disbursement of government subsidies for solar and other renewable energy investments.
- The loan will also help Fourth Partner Energy and other IPPs to develop projects in India more quickly and efficiently, contributing to the country's goal of achieving 175 GW of renewable energy capacity by 2022.
- The loan will also encourage international commercial financing, which can help India meet its renewable energy targets and reduce its reliance on coal and other fossil fuels for energy production.
