VATIS UPDATE Article

The Asian Development Bank (ADB) has approved a new $390 million financing package for ReNew Power to develop renewable energy projects in India. According to ADB, The financing will assist 7 special purpose vehicles owned by ReNew Power, the first of which has also been signed. This is the first transaction to include in its financing plans resources from ADB as well as Leading Asia’s Private Sector Infrastructure Fund (LEAP). LEAP is a funding arrangement provided by Japan International Cooperation Agency (JICA) and is administered by ADB.

With the financing, ReNew Power will develop photovoltaic solar power projects with combined capacity of 398 megawatts (MW) in Jharkhand and Telangana, and wind power projects with combined capacity of 311 MW in Andhra Pradesh, Gujarat, Karnataka and Madhya Pradesh. Combined, the projects are expected to generate 1,400 gigawatt hours of electricity and help avoid nearly 1.2 million tons of carbon dioxide (CO2) emissions per year. The plants will be commissioned by December 2017.

The generated electricity will be supplied to respective state power distribution companies under long term power purchase agreements. ReNew Power, an independent power producer (IPP) company, generates reliable and efficient non-conventional power through over 3,000 MW of commissioned and under-construction clean energy projects across 15 states in India. ADB has been supporting the development of renewable energy in India since 2007, when it financed the first set of wind projects.