The Asian Development Bank (ADB) has approved a $390 million (~Rs.26.54 billion) financing package for ReNew Power, an Indian renewable energy project developer. The funds will be utilized to develop 398 MW of solar PV projects across Jharkhand and Telangana and 311 MW of wind in Andhra Pradesh, Gujarat, Karnataka, and Madhya Pradesh.
The projects are expected to be commissioned by December 2017 and will help generate 1,400 GWh of electricity. “The generated electricity will be supplied to respective state power distribution companies under long-term power purchase agreements,” stated the ADB.
Sources at Renew Power confirmed that the financing package has been approved, but could not confirm further details about the Special Purpose Vehicles to be established for the projects or individual project capacities. In July 2014, the ADB also made an equity investment of $50 million (~Rs. 3.4 billion) in ReNew Power.
As part of a commitment to scale up initiatives to combat climate change, the ADB announced in September 2015 that it will finance $6 billion (~Rs.408.43 billion) a year by 2020. Funds will be allocated towards private sector activities, particularly in major renewable energy markets such as India.
According to Mercom India Solar Quarterly Report, ReNew Power tops the list of Indian solar developers for project under development pipeline of over 1.3 GW accounting for nearly 10 percent of the market.