New Delhi [India], August 29 : The Asian Development Bank (ADB) and Fourth Partner Energy Private Limited (Fourth Partner) signed a long-term loan of up to Rs 120 crore (about USD 14.7 million) to construct and operate a 25-megawatt solar photovoltaic-based power plant to increase clean and low-cost energy supply.
The power plant, located in Tirunelveli district in Nadu, is expected to generate about 50.7 gigawatt-hours of electricity annually and will directly sell power to commercial and industrial users, as per an ADB release.
Fourth Partner is India’s one of the leading renewable energy solutions platforms.
India’s open-access renewable energy policy allows a group of consumers to purchase electricity directly from an independent power producer (IPP).
“Open access energy procurement can play an important role in businesses achieving their net zero emissions targets,” said ADB’s Private Sector Operations Department Director General Suzanne Gaboury.
“This is ADB’s first direct financing to a renewable energy plant of this nature and is expected to crowd in international commercial financing to further decarbonize the commercial and industrial sector.”
ADB estimates nearly 41,700 tonnes of carbon dioxide emissions a year will be avoided through the plant, which would otherwise have been generated by conventional fossil fuel plants.
“We are excited to add ADB to our esteemed list of green financiers as we move closer to our 3.5 GW renewable energy target by 2025. Fourth Partner is also constructing solar and wind parks across Ottapidaram, Tuticorin, and Nandikundu in Tamil Nadu,” said Fourth Partner Energy Co-Founder and Executive Director Vivek Subramanian.
“We see this project as the beginning of our long-standing partnership with ADB to deliver cleaner, affordable power to India’s commercial and industrial sector.”
ADB has supported the development of renewable energy in India since 2007 when it financed the first set of wind projects under the IPP model.
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