ADB Teams Up with India's ACME Group to Roll Out 200-Megawatt Solar Projects

Researched by Industrial Info Resources India (Delhi, India)--Multilateral funding agency Asian Development Bank (ADB) (Manila, Philippines) said it would extend loans up to $100 million to help India's private sector solar power developer, ACME Group (Gurgaon, Haryana), finance new solar plants in the country.

ADB will support the development and commissioning of solar projects with capacity of 200 MW, with half or 100 MW already awarded under the second phase of India's National Solar Mission, while others are still to be identified.

ACME Solar Energy Private Limited, a joint venture of Électricité de France Energies Nouvelles (EDF:EN) (Paris) and Luxembourg-based EREN with ACME group, has about 350 MW of solar power projects in pipeline.

The projects that are approved so far are located in the Jodhpur district of Rajasthan state, where solar irradiance levels are among the highest in the country. The power generated from these projects will be sold to the Solar Energy Corporation of India (SECI) at a fixed tariff of 9 cents per kilowatt hour (kWh) over the next 25 years.

The 200-MW of combined generating capacity is expected to provide 380,000 megawatt-hours of electricity a year, avoiding around 280,000 tons of carbon dioxide which would otherwise have been emitted from fossil fuel power generators.

"Solar and other renewable power sources are essential for India's energy diversification and security, and for underpinning the country's long term growth. ADB's support for ACME will help break down barriers for more private sector investment, including foreign direct investment, in clean energy infrastructure," said Isabelle Chauche, Investment Specialist in ADB's Private Sector Operations Department.

Apart from ADB, International Finance Corporation (IFC) and commercial banks are providing a loan of about $100 million and ACME Solar Energy Private Limited's estimated equity of $65 million, for a total investment worth of $265 million.

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