The Asian Infrastructure Investment Bank (AIIB) has allocated up to INR 7.3 billion ($ 88 million) to finance the ENGIE Solar Power Project in Gujarat, India, in collaboration with the Asian Development Bank (ADB). This funding is part of a broader commitment by the AIIB and ADB, which together are providing up to INR 14.6 billion ($ 175.9 million) in project finance senior debt facility in local currency.
The investment supports the development, construction, operation, and maintenance of a 400MW solar PV plant, aligning with ENGIE’s strategic plan to invest EUR 22-25 billion in renewable and low-carbon energy solutions between 2023 and 2025.
The project supports the Government of India’s clean energy goals, which include reaching 500MW of non-fossil fuel generation capacity and meeting 50% of energy requirements from renewable sources by 2030. India, as a founding member of the AIIB and its largest borrower, continues to benefit from the bank’s investments, with 48 projects approved amounting to $10.45 billion as of August 14.
Rajat Misra, AIIB Acting Vice President for Investment Clients Region 1 and Financial Institutions and Funds, Global said, “AIIB is committed to supporting our Members’ green transition and development. This project fully aligns with AIIB’s Energy Sector Strategy and mission of Financing Infrastructure for Tomorrow. It will further strengthen the development of renewable energy infrastructure and reduce the carbon intensity of the energy supply in our Members.”
ENGIE India CEO and Country Manager Amit Jain highlighted the project’s local benefits, saying, “In collaboration with ADB and AIIB, we’re bringing a landmark 400MW solar project to Surendranagar, Gujarat, marking a significant stride in India’s clean energy journey. This venture not only aligns with our green power goals but also catalyzes local job creation, reinforcing our pledge to India’s nonfossil fuel future, firming our commitment to India’s energy transition.”