The Asian Development Bank (ADB) has agreed to provide a loan of Rs1.2bn ($14.7m) to the Indian renewable energy solutions platform Fourth Partner Energy for the construction of a solar power facility in India.
The 25MW facility will be built in the Tirunelveli district in the state of Tamil Nadu and will generate 50.7 gigawatt-hours of clean energy per year.
Power will be sold directly to commercial and industrial users, supported by the nation's open-access renewable energy policy, which enables users to buy electricity directly from an independent power producer (IPP).
ADB private sector operations department director-general Suzanne Gaboury stated: “Open access energy procurement can play an important role in businesses achieving their net-zero emissions targets.
“Solutions like this are being spearheaded by ADB to promote renewable energy across the region.
“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 decarbonise the commercial and industrial sector”.
The project will offset 41,700 tonnes of carbon emissions annually.
Fourth Partner Energy co-founder and executive director Vivek Subramanian stated: “We are excited to add ADB to our esteemed list of green financiers as we move closer to our 3.5GW renewable energy target by 2025.
“Fourth Partner is also constructing solar and wind parks across Ottapidaram, Tuticorin and Nandikundu in Tamil Nadu. 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.”
