Renewable energy company BluPine Energy has announced the financial closure of ₹5.11 billion (~$61.3 million) for its 120 MW solar project in Gujarat.

The green loan financing for the project was secured from Standard Chartered.

The total investment for the project is valued at ₹6.65 billion (~$79.8 million). Upon completion, the project is expected to generate about 323,000 MWh of solar energy annually, offsetting an estimated 296,000 tons of CO₂ and providing power to approximately 270,000 households.

The power generated from the project will be supplied to Gujarat Urja Vikas Nigam (GUVNL) under a power purchase agreement for 25 years from the scheduled commercial operation date.

Bluepine Energy had won the capacity under GUVNL’s auction to procure power from 750 MW of grid-connected solar projects with a greenshoe option of an additional capacity of up to 750 MW (Phase XVI).

The company had quoted the lowest tariff of ₹2.49 (~$0.031)/kWh to win 120 MW capacity.

“We are happy to announce the successful financial closure of our first 120 MW solar project in Gujarat. This accomplishment underscores our strategic vision and commitment to pioneering sustainable energy solutions. With a green loan valued at ₹5.11 billion (~$61.3 million), this visionary project not only contributes to India’s ambitious clean energy goals but also highlights our unwavering dedication to innovation and environmental responsibility,” Sanjeev Bhatia, CFO of BluPine Energy.

BluPine Energy’s cumulative solar and wind energy capacity in Gujarat will scale up to 360 MW and 290 MW, respectively, across three projects under GUVNL with the addition of this project.

Moreover, the overall renewable energy capacity will reach approximately 1.5 GW, with 360 MW currently operational.

BluPine Energy was established in India by Actis, a global investor with an investment of ₹800 million from Actis’ Energy Fund 5. The company aims to develop a 4-plus GW renewable energy portfolio in India exclusively.

Blupine was among the winners in Rajasthan Urja Vikas Nigam’s auction to set up 1,200 MW of solar power projects anywhere in India with a committed supply for at least six hours from an energy storage system during peak demand periods. BluPine Energy won 100 MW by quoting a tariff of ₹6.68 (~$0.081)/kWh.

According to Mercom Capital Group’s 9M and Q3 2023 Solar Funding and M&A Report, the total announced large-scale project funding in the first nine months (9M) of 2023 came to $27.5 billion in 169 project funding deals, a 20% increase compared to $22.9 billion in 128 projects in 9M 2022.