ADB and ENGIE Group Sign Loan Agreement for Solar Power Plant in Gujarat

This project is the second venture financed by ADB for the ENGIE group in India, following the financing of ENGIE’s flagship project in India in 2020.

The Asian Development Bank (ADB) and the ENGIE group have signed a long-term local currency loan agreement to construct and operate a 400-megawatt solar photovoltaic power plant in Surendranagar District, Gujarat, India.

ADB acted as the mandated lead arranger for the entire loan amounting to 14.6 billion Indian rupees (approximately $175.9 million), with both ADB and the Asian Infrastructure Investment Bank each providing 7.3 billion Indian rupees. This project supports the Government of India’s target to achieve at least 500 gigawatts of non-fossil fuel energy capacity by 2030.

"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.”

This project is the second venture financed by ADB for the ENGIE group in India, following the financing of ENGIE’s flagship project in India in 2020. The project demonstrates ADB’s focus on mobilizing long-term financing from partner organizations.

The solar panels for this plant will be constructed using locally produced bifacial photovoltaic power modules, diversifying the solar module supply chain and supporting Indian manufacturers. The plant is expected to generate an average of 805 gigawatt-hours annually over the next 25 years, avoiding nearly 662,441 tons of carbon dioxide emissions per year.

Enren Energy Private Limited, a special-purpose vehicle owned by the ENGIE group, will implement the project, with Gujarat Urja Vikas Nigam Limited, a state-owned electricity distribution company, as the sole offtaker. ADB has been supporting the development of renewable energy in India since 2007, financing several independent solar power producers.

“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 and firming our commitment to India’s energy transition.”

ENGIE group is a global leader in low-carbon energy and services, with operations in 31 countries. In India, ENGIE’s portfolio includes 1.1 gigawatts of operational projects, comprising 220 megawatts of wind energy and the remainder in solar energy.