IFC to finance 550 MW Brookfield solar project in Rajasthan, ET EnergyWorld

New Delhi: International Finance Corporation (IFC) has committed to partially finance Brookfield Asset Management’s 550 MW solar power project in Bikaner, Rajasthan with USD 105 million through long-term non-convertible bonds allocated to the project’s special purpose vehicles that are implementing the project .

According to an official press release, in line with its commitment, Brookfield will provide solar power to commercial and industrial customers across India at more competitive rates under long-term power purchase agreements (PPAs) and contribute to achieving national decarbonization goals.

“This is IFC’s first investment in Asia-Pacific using an innovative hybrid off-take structure, where the project sells generated power to C&I consumers through long-term corporate PPAs and trading markets via an exchange,” he added.

The release said the project will be connected to the interstate section of the Indian Green Energy Corridor transmission system.

“Through our partnership with Brookfield, IFC aims to facilitate the wider use of clean energy by demonstrating the viability of generating renewable energy at scale and selling it to pan-India corporate and industrial customers through the interstate transmission system,” said Imad N Fakhoury, IFC Regional Director for South Asia .

Fakhoury added that the innovative procurement options highlight the role of hybrid transactions in increasing investment in renewable energy sources, increasing market competitiveness and offsetting the carbon footprint of the energy sector – which is key to achieving India’s climate goals.

“We are pleased to partner with IFC with a common goal under this strategic partnership…We plan to further expand our footprint in renewables and energy transition in India, focusing on both the utilities and C&I segments in the country. With a portfolio of over 25 GW of renewable energy assets operating or under development on leading platforms in the country, we look forward to leveraging the scaled transformation opportunities offered in the country,” said Nawal Saini, Managing Director, Renewable Energy and Transition, Brookfield.

Since 2010, IFC has invested $2.79 billion in multiple projects to strengthen India’s renewable energy and energy efficiency sectors.