The financing, which will assist seven special purpose vehicles owned by ReNew Power, is part of ADB's efforts to accelerate private sector-led infrastructure development in Asia and the Pacific and increase support for clean energy.
The company will use the funds to develop 398MW of solar photovoltaic (PV) projects in the states of Jharkhand and Telangana along with 311MW of wind projects in Andhra Pradesh, Gujarat, Karnataka and Madhya Pradesh.
After the planned completion by December 2017, the plants are expected to generate a total of 1,400 GWh of electricity per year. They will sell their output to the respective state power distribution companies under long-term contracts.
ReNew Power generates non-conventional power through more than 3,000MW of commissioned and under-construction clean energy projects across 15 states in India.
ADB Private Sector Operations Department director general Michael Barrow said: “We strongly believe in ReNew Power’s potential and execution capabilities.
“The company has shown tremendous growth over the last few years and we are pleased to provide a further boost to help it bridge the gap between India’s current and growing energy needs and to reduce the country’s carbon footprint.”
The transaction includes in its financing plans resources from both ADB and the Leading Asia's Private Sector Infrastructure Fund (LEAP). LEAP, which is administered by ADB, is a funding arrangement provided by Japan International Cooperation Agency.
ADB has been supporting the renewable energy development in India since 2007, when it financed the first set of wind projects. The bank has also financed solar independent power producers by assisting projects under the National Solar Mission and several state policies.
Image: ADB boosts support for clean energy with $390m renewables financing in India. Photo: Courtesy of Asian Development Bank.
