ADB and AIIB expand financing for India’s Green Energy Corridors

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
Now ADB with AIIB backing is funding 400kV transmission components in Tamil Nadu to connect at Pugalur. Credit: ADB, AIIB

The Asian Development Bank (ADB) has enlarged its support of clean energy transmission projects in India by obtaining co-financing from multilateral development bank Asian Infrastructure Investment Bank (AIIB).

ADB was already financing India’s Green Energy Corridor projects, which seek to transfer energy from renewable energy rich states to major power demand centres such as the mega cities of Mumbai and other regions. This original support included two US$500 million loans to build and upgrade inter-regional grid systems between the western and southern regions, and high voltage transmission lines and substations in the northern region to help distribute wind and solar generation.

Now ADB, with AIIB backing, is funding 400kV transmission components in Tamil Nadu to connect at Pugalur with the long-distance grid systems already financed by ADB.

ADB will now provide US$50 million out of savings from the earlier loans, while AIIB will provide US$100 million for this component, which has a total requirement of US$303.5 million. India’s Powergrid will finance the remainder.

Renewables integration remains a key challenge for India, but the government recently released a report saying that integrating 175GW by 2022 is possible. The Ministry of Power has also proposed setting up a host of Renewable Energy Management Centres (REMCs) across the country to help integrate renewables as their penetration increases. 

“We are pleased that this first AIIB cofinanced project in India will bring clean energy to more people and help the country achieve its ambitious renewable energy targets,” said Priyantha Wijayatunga, director of ADB’s energy division in its South Asia Department. “We look forward to broadening our partnership with AIIB in the coming years.”

Major renewable energy clusters in India have been identified for the transmission of renewables from Bhadla, Kamuthi, Kurnool, Leh/Ladkah, Rewa and Charanka.

By investing US$150 million in the IFC Emerging Asia Fund, AIIB will also now become one of its major investors to promote the private equity asset class in emerging markets such as Bangladesh, Cambodia, China, India, Indonesia, Myanmar, Philippines, Sri Lanka and Vietnam. 

Power Map of Southern India: credit: MNRE

Read Next

April 16, 2021
The US Federal Energy Regulatory Commission (FERC) has announced a string of initiatives to help develop the country’s power grid, including tightening a transmission incentive policy for utilities and a workshop that will explore how companies can benefit from grid-enhancing technology.
PV Tech Premium
April 8, 2021
After a challenging year, India’s solar sector stands primed for something of a rebound. But a host of familiar issues, from the perilous state of DISCOMs to regulatory uncertainty, run the risk of stymying future growth. Vinay Rustagi, managing director at consultancy Bridge to India, talks to PV Tech about the future prospects for Indian solar.
April 8, 2021
Tata Power Solar has expanded its PV manufacturing facility in Bengaluru, India, taking the total production capacity of modules and cells to 1.1GW.
April 1, 2021
Norwegian independent power producer Scatec is looking to collaborate with project developers in India as part of efforts to gain a foothold in the country’s burgeoning solar sector.
PV Tech Premium
March 26, 2021
Solar developers have welcomed clarification on India’s new import duties for modules and cells that will come into effect next year, but questions have been raised about the ability of domestic manufacturers to ramp up production to meet rising demand.
March 23, 2021
Scatec has unveiled a NOK 100 billion (US$11.7 billion) plan that will see the company expand its renewables portfolio to 15GW over the next four years.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
April 20, 2021
Upcoming Webinars
April 28, 2021
4:00 - 4:30 PM CET
Solar Media Events
May 11, 2021