International Finance Corporation (IFC) has committed to part finance a 550 megawatt peak (MWp) solar power project in Bikaner, Rajasthan being developed by Brookfield Asset Management with $105 million long-term non-convertible debentures.

IFC said in a statement that the move is to support India in scaling up its renewable energy capacity.

The debentures will be allocated to the project’s special purpose vehicles, which are implementing the project.

Following its commitment, Brookfield will provide solar power to commercial and industrial (C&I) consumers across India at more competitive tariffs through long-term power purchase agreements (PPAs) and contribute to the nation’s decarbonization goals.

This is IFC’s first investment in Asia and the Pacific 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 (PPAs) and merchant market via exchange.

The project will be connected to the inter-state transmission system section of India’s green energy corridor.

Solar plants are also expected to annually mitigate greenhouse-gas (GHG) emissions by 804,408 tons of carbon dioxide (CO2), equivalent to taking over 173,680 cars off the road every year.

It is noted that India is at the forefront of a green transition in the energy sector, having pledged to increase its non-fossil fuel capacity to 500 gigawatt (GW) by 2030.

The country’s renewable energy sector has already attracted about $10 billion in annual investments between 2017 and 2022 and is expected to generate annual investments of $25 billion through 2030.

Of this, around 20 percent is estimated to be directed towards the C&I and merchant market.

“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,

“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,” said Imad N. Fakhoury, IFC’s Regional Director for South Asia.

Nawal Saini, Managing Director, Renewable Power & Transition, Brookfield, said they are pleased to collaborate with IFC, sharing a common goal through this strategic partnership.

“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,” he said.

With a portfolio of over 25 GW of renewable power assets in operation or in development across leading platforms in the country, he said they look forward to capitalizing on the scaled transition opportunities on offer in the country.

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

IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets.

The organization works in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries.

In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises.

Brookfield is a leading global alternative asset manager with over $925 billion of assets under management across renewable power and transition, infrastructure, private equity, real estate, and credit.

The firm invests client capital for the long-term with a focus on real assets and essential service businesses that form the backbone of the global economy.

It offers a range of alternative investment products to investors around the world — including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors.

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