The International Finance Corporation will partly fund Brookfield’s solar power project in Rajasthan.
The World Bank subsidiary International Finance Corporation (IFC) recently committed $105 million (nearly 8 billion INR) to partially finance a 550 MWp solar power project in Bikaner, Rajasthan. Brookfield Asset Management, a Toronto-based company, is developing the project.
According to the official statement by both companies, the investment will be made through long-term non-convertible bonds allocated to the project’s special purpose vehicles (SPVs), which are implementing the project.
The joint statement also announced that Brookfield has committed to supplying solar power to commercial and industrial consumers across India. This will be achieved through long-term power purchase agreements (PPAs) at more competitive rates. Brookfield’s initiative aims to support the country’s goals for decarbonisation.
It also marks IFC’s first-ever investment in the Asia-Pacific region that uses a novel hybrid offtake approach, where power is being sold through PPAs and directly in the merchant market via exchanges. The project will integrate into India’s green energy corridor via the inter-state transmission system (ISTS).
IFC’s Regional Director of the South Asian region, Imad N. Fakhoury, sees this partnership with Brookfield as a step to promote the widespread adoption of clean energy. This includes demonstrating the feasibility of large-scale renewable energy generation and sales to corporate and industrial clients across India.
Fakhoury also added that the “hybrid transaction” methods play a crucial role in expanding renewable investments, enhancing market competitiveness, and reducing the energy sector’s carbon footprint, aligning with India’s climate objectives.
Nawal Saini, Managing Director, Renewable Power and Transition of Brookfield, noted the increasing demand for clean energy in India, where over 5 GW of renewable capacity to the commercial and industrial sector in the past year alone. Leveraging its operational efficiency, Brookfield aims to further expand their presence in India’s renewable energy transition sector.
Since 2010, IFC has committed $2.79 billion across various projects aimed at bolstering India’s renewable energy and energy efficiency sectors.
Currently, Brookfield has a portfolio of over 25 GW of renewable power assets in operation or in development across platforms in India.
Reports suggest the country’s energy transition sector is accelerating, supported by India’s goal of reaching 500 GW of renewable energy capacity by 2030. This initiative is anticipated to attract $25 billion in annual investments, with about 20% targeted at the C&I sectors as well as the merchant market.
