In a significant move towards sustainable development, the Asian Development Bank (ADB) and the ENGIE group have inked a transformative deal to establish a 400-megawatt solar photovoltaic power plant in Surendranagar District, Gujarat, India. This project is not just a step but a leap forward in India’s ambitious goal to achieve at least 500 gigawatts of non-fossil fuel energy capacity by 2030.

The financing framework for this endeavor is robust, featuring a long-term local currency loan agreement totaling 14.6 billion Indian rupees, co-financed by the ADB and the Asian Infrastructure Investment Bank, each contributing equally. This strategic financial injection is pivotal, as noted by ADB Director General for Private Sector Operations, Suzanne Gaboury. She highlighted the essential role of private sector involvement in Asia’s clean energy transition, stating, “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 venture marks the second collaboration between ADB and the ENGIE group in India, underscoring a deepened commitment to fostering renewable energy projects in the region. The solar facility will utilize cutting-edge bifacial photovoltaic power modules produced locally, supporting India-based manufacturers and diversifying the solar module supply chain.

The operational impact of the plant is impressive, with an expected average generation of 805 gigawatt-hours annually over the next 25 years, which will significantly reduce carbon emissions by nearly 662,441 tons annually. The project is implemented by Enren Energy Private Limited, a special-purpose vehicle owned by the ENGIE group, with Gujarat Urja Vikas Nigam Limited, a state-owned entity, as the sole offtaker.

ENGIE India’s CEO and Country Manager, Amit Jain, emphasized the project’s broader benefits, including local job creation and alignment with India’s clean energy objectives. He noted, “This venture not only aligns with our green power goals but also catalyzes local job creation, reinforcing our pledge to India’s nonfossil fuel future, firming our commitment to India’s energy transition.”

With 1.1 gigawatts of operational projects in India, including 220 megawatts of wind and the remainder in solar, the ENGIE group continues to be a global leader in low-carbon energy solutions, operating across 31 countries.

Since its inception in 1966, ADB remains committed to supporting Asia and the Pacific in achieving a sustainable future, eradicating extreme poverty, and promoting inclusive growth. This project is a testament to ADB’s enduring role in fueling the region’s green revolution.

  Asian Development Bank, ENGIE Group, Gujarat Solar Project, India Renewable Energy, renewable energy India, Solar Energy, Solar Power Investment, Sustainable Development