The Asian Development Bank (ADB) and Fourth Partner Energy Private Limited (Fourth Partner) have signed a long-term loan of up to 1.2 billion Indian rupees (about $14.7 million) to construct and operate a 25-megawatt solar photovoltaic-based power plant to increase clean and low-cost energy supply to commercial and industrial customers.
The power plant, located in Tirunelveli district in the state of Tamil Nadu in India, is expected to generate about 50.7 gigawatt-hours of electricity annually and will directly sell power to commercial and industrial users. India’s progressive open access renewable energy policy allows a group of consumers to purchase electricity directly from an Independent Power Producer (IPP).
Commenting on the development, said ADB’s Private Sector Operations Department Director General Suzanne Gaboury, said, “Open access energy procurement can play an important role in businesses achieving their net zero emissions targets. Solutions like this are being spearheaded by ADB to promote renewable energy across the region. This is ADB’s first direct financing to a renewable energy plant of this nature – and is expected to crowd in international commercial financing to further decarbonize the commercial and industrial sector”.
ADB has supported the development of renewable energy in India since 2007 – when it financed the first set of wind projects under the IPP model. ADB has subsequently financed solar IPPs by assisting projects under the National Solar Mission and various state policies.
