German development fund KfW Entwicklungsbank has signed a reduced-interest loan of €25 million to help fund a 125MW solar plant in the state of Maharashtra in India.
The total cost of the development – which has the potential to be ramped up by a further 25MW in future – is estimated at €370 million, with the state-run project developer Mahagenco is expected to stump up the remaining finance. Mahagenco expects the system to be connected to the grid in March 2012.
“India will have to play a key role in global climate protection because of its fast, energy-intensive growth,” said KfW executive board member Norbert Kloppenburg . “By financing this strategic investment in renewable energies KfW Entwicklungsbank is making a significant contribution to combating climate change and implementing the energy turnaround in India.”
When completed the Maharashtra plant will be one of the largest in Asia and enable the Indian government to move a step closer to its goal of generating 20GW through solar by 2022. Earlier this week the country’s National Solar Mission approved 610MW of new PV and solar thermal projects to be installed over the next two years.