ENGIE group has signed a loan agreement with the Asian Development Bank (ADB) for a 400 MW solar photovoltaic power project in Surendranagar District, Gujarat.

ADB was the lead arranger for the loan of ₹14.6 billion (~$175.9 million), with ADB and Asian Infrastructure Investment Bank providing ₹7.3 billion (~$87.42 million) each.

This is the second project that ADB has financed for ENGIE  in India, following the financing of the group’s main project in 2020.

Enren Energy, a special-purpose vehicle of the ENGIE group, will implement the 400 MW project, and Gujarat Urja Vikas Nigam will be the sole off-taker.

The solar panels will be manufactured using locally produced bifacial photovoltaic panels. The project is expected to generate an average of 805 GWh of solar power annually over the next 25 years, avoiding nearly 662,441 tons of carbon dioxide emissions annually.

“The private sector’s engagement in the fight against climate change is pivotal for achieving a clean energy transition in Asia and the Pacific,” said ADB Director General for Private Sector Operations Suzanne Gaboury. “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.”

“In collaboration with ADB, we’re bringing a landmark 400-megawatt solar project to Surendranagar, Gujarat, marking a significant stride in India’s clean energy journey,” said ENGIE India CEO and Country Manager Amit Jain. “This venture not only aligns with our green power goals but also catalyzes local job creation, reinforcing our pledge to India’s non-fossil fuel future, firming our commitment to India’s energy transition.”

In 2020, ADB and ENGIE 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.

In 2023, ADB granted a $200 million loan to enhance the quality, efficiency, and dependability of Uttarakhand’s electricity supply and help the state’s residents transition to using clean energy sources.