The Asian Development Bank (ADB) and SAEL Industries have signed a loan amounting to 12.23 billion Indian rupees (US$147 million) for the development of a 400-megawatt greenfield solar power plant in Gujarat.
The deal was done via SAEL subsidiary SAEL Solar P4 Private Limited. The financing package comprises of 12.23 billion Indian rupees from ADB, and a parallel loan of up to 6.11 billion Indian rupees underwritten by Tata Capital. ADB led the structuring of the financing package, as well as the mobilization of domestic private capital.
“The private sector must play a pivotal role in the transition from fossil fuels to renewable energy generation, particularly in Asia and the Pacific region, which contributes over half of global greenhouse gas emissions," says ADB director general for private sector operations Suzanne Gaboury. “As the region’s climate bank, ADB provides long-term local currency financing to stimulate private sector investment in clean energy.”
ADB’s partnership with SAEL supports the Government of India’s objective of achieving 500 gigawatts of renewable energy generation capacity by 2030.
SAEL Solar P4 Private Limited will build and operate the solar power plant, situated within the Khavda Ultra Mega Solar Park in Gujarat. The electricity generated by the facility will be supplied to state-owned energy distributor Gujarat Urja Vikas Nigam Limited through a 25-year power purchase agreement.
The plant is expected to produce an average of 953 gigawatt-hours of clean energy annually, helping to avoid approximately 783,855 tonnes of carbon dioxide emissions. SAEL and ADB have previously partnered in a biomass power generation project that uses agricultural residues.
SAEL Industries is a renewable energy company with a strong focus on the creation of green assets to contribute to the transition to green energy, with biomass and solar power projects in various states across India. It is a member of the SAEL group of companies which was founded in 1999 and has diversified business interests in renewable energy generation, warehousing, and agricultural processing.