The International Finance Corporation (IFC) will partially finance a 550 MW solar power project being developed by Brookfield Asset Management in Bikaner, Rajasthan, with a $105 million investment.

The investment will be through long-term non-convertible debentures assigned to the project’s special purpose vehicles, which will implement the project.

The project will be connected to the inter-state transmission system of India’s green energy corridor.

Brookfield will provide commercial and industrial (C&I) consumers with solar power at competitive tariffs through long-term power purchase agreements and merchant markets via power exchanges.

“Through our partnership with Brookfield, IFC aims to facilitate the broader uptake of clean energy by demonstrating the viability of large-scale renewable energy generation and sale to pan-India corporate and industrial clients through the interstate transmission system,” said Imad N. Fakhoury, IFC’s Regional Director for South Asia. 

“The novel procurement options underscore the role of hybrid transactions in scaling up investments in renewables, increasing market competitiveness, and offsetting the energy sector’s carbon footprint—key to achieving India’s climate goals,” he said.

Nawal Saini, Managing Director, Renewable Power & Transition, Brookfield, said, “We are pleased to collaborate with IFC, sharing a common goal through this strategic partnership. The corporate appetite for clean energy is growing in India, with over 5 GW of renewable capacity added for the C&I sector in the last 12 months alone. By leveraging our operational expertise, we plan to continue to expand our renewable and energy transition footprint in India, focusing on both state utility and C&I segments in the country.” said.

The IFC has advocated the concept of blended finance to bolster India’s transition to clean energy by attracting greater private investment into impactful climate initiatives. Blended finance involves the integration of concessional funds from governments and philanthropic organizations with funds from development finance institutions such as the IFC.

In March, IFC invested ₹12.5 billion (~$150.3 million) in Grasim Industries to help its decarbonization initiatives.