IFC Invests $105 Million in Brookfield’s Solar Project

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IFC

The IFC’s investment will be made through long-term loans allocated to the project’s special purpose vehicles and entities responsible for its implementation.

The International Finance Corporation (IFC), the private sector arm of the World Bank, announced a $105 million investment in a major solar power project developed by Brookfield Asset Management in Bikaner, Rajasthan. The project will have a capacity of 550 megawatts peak (MWp), a unit that measures a solar or wind project’s maximum power output.

The IFC’s investment will be made through long-term loans allocated to the project’s special purpose vehicles and entities responsible for its implementation.

This partnership aims to achieve several goals:

Competitive Solar Power for Businesses:

Following the investment, Brookfield will offer solar power to commercial and industrial (C&I) consumers across India at competitive rates through long-term power purchase agreements (PPAs).

Clean Energy Solutions: The project will contribute to India’s decarbonization goals by providing clean energy and reducing reliance on fossil fuels.

Innovative Sales Model: This is IFC’s first investment in the Asia-Pacific region using a “hybrid offtake structure.” The project will sell power to both Commercial & Industrial (C&I) consumers with PPAs and the merchant market through an exchange.

Green Energy Corridor Integration: The project will connect to India’s green energy corridor, a nationwide transmission system facilitating clean energy distribution.

Scaling Up Renewables in India

Imad N. Fakhoury, IFC’s regional director for South Asia, highlighted the project’s significance in promoting clean energy adoption. He emphasized the partnership’s role in demonstrating the viability of large-scale renewable energy generation with sales to pan-India C&I clients.

Fakhoury noted the innovative procurement model’s potential for increasing market competitiveness, reducing the energy sector’s carbon footprint, and supporting India’s climate goals. Since 2010, the IFC has invested nearly $2.8 billion in various projects strengthening India’s renewable energy and energy efficiency sectors.

Nawal Saini, managing director of renewable power & transition at Brookfield, acknowledged the growing demand for clean energy among Indian businesses. He cited the addition of over 5 GW of renewable capacity in the C&I sector within the past year.

Brookfield plans to leverage its expertise and expand its renewable energy presence in India, focusing on both state utilities and C&I segments. With a robust renewable power portfolio exceeding 25 GW in India, Brookfield aims to capitalize on the country’s clean energy transition opportunities.

India’s Green Energy Ambitions

This investment aligns with the Indian government’s ambitious plan to achieve a 500 GW renewable energy capacity by 2030. The country’s renewable energy sector is projected to attract annual investments of $25 billion by 2030, with an estimated 20% directed towards the C&I and merchant markets.

The IFC’s investment in the Bikaner solar project signifies a significant step towards a cleaner energy future for India, driven by both public and private sector collaboration.

Credit: Unsplash

Source: ESG Time

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