International Finance Corporation (IFC) will invest $105 million (about Rs 871 crore) in a ~550 MWp solar power project in Bikaner, Rajasthan being developed by Brookfield Asset Management.
IFC will invest the funds through long-term non-convertible debentures allocated to the project’s special purpose vehicles implementing the project, a joint release said.
This is IFC’s first investment in the Asia Pacific region using an innovative hybrid offtake structure, where the project sells the power generated to commercial and industrial (C&I) consumers under long-term corporate power purchase agreements and merchant market via exchange.
The project will be connected to the interstate transmission system section of the country’s green energy corridor.
“Through our partnership with Brookfield, IFC aims to facilitate the broader uptake of clean energy by demonstrating the viability of large-scale renewable energy generation, and sale to pan-India corporate and industrial clients, through the interstate transmission system,” said Imad N Fakhoury, IFC’s regional director for South Asia at IFC.
The novel procurement options underscore the role of hybrid transactions in scaling up investments in renewables, increasing market competitiveness, and offsetting the energy sector’s carbon footprint—key to achieving India’s climate goals, Fakhoury said.
“The corporate appetite for clean energy is growing in India, with over 5 GW of renewable capacity added for the C&I sector in the last 12 months alone. By leveraging our operational expertise, we plan to continue to expand our renewable and energy transition footprint in India focusing on both state utility and C&I segments in the country,” said Nawal Saini, managing director, renewable power & transition, Brookfield.
With over 25 GW of renewable power assets in operation or in development in the country, Brookfield is looking forward to capitalising on the scaled transition opportunities on offer, Saini said.
Since 2010, IFC has invested $2.79 billion in multiple projects in the renewable energy and energy efficiency sectors in the country.