The Asian Development Bank (ADB) and  ENGIE have signed a long-term loan agreement worth ₹4.66 billion (~ $65.6 million) to develop and operate a 200 MW (AC) solar project in Gujarat.

Electro Solaire Private Limited, a special purpose vehicle owned by ENGIE, will implement the project. The ADB will provide the whole debt required to develop the solar project with another international lender.

In May 2019, ENGIE group had emerged as the lowest bidder in the auction to award 700 MW of solar projects conducted by Gujarat Urja Vikas Nigam Limited (GUVNL). The solar PV projects were to be developed under Phase III of Raghanesda Solar Park. ENGIE quoted a tariff of ₹2.65 (~$0.038)/kWh to develop the capacity of 200 MW.

GUVNL had retendered this capacity in March 2019 after it was first issued in September 2018.

“We are glad to extend our partnership with the ADB to Indian projects. Apart from generating green power, the project will create about 1,200 direct and indirect jobs,” said Phuntsok Wangyal, Head of Acquisition, Investments, and Financial Advisory, ENGIE Group.

“The project will enable the ENGIE group to expand its renewable energy capacity in India. The project is part of ADB’s ongoing support to India’s renewable energy sector and will help the Government of India meet its target for non-fossil fuel-based electric power generation,” said Mayank Choudhary, Principal Investment Specialist, Private Sector Operation Department, ADB.

Electro Solaire is expected to commission the 200 MW solar power project in the first half of 2021. The project is expected to generate 440 GWh of electricity while reducing 385,000 tons of carbon dioxide emissions annually.

The company said the government of Gujarat has collaborated with ENGIE to develop the project through a power purchase agreement for 25 years.

According to Mercom’s India Solar Project Tracker, ENGIE has 619 MW of large-scale solar projects in operation, and 200 MW of project is under development pipeline as of June 2020.

In January 2020, ENGIE announced that it was selling a 74% stake in its solar assets in India to Edelweiss Infrastructure Yield Plus.