The Asian Development Bank (ADB) has arranged a Rs 1,460 crore loan for ENGIE SA to develop a 400-megawatt solar photovoltaic power plant in Gujarat. The total financing of Rs 14.6 billion (approx. $175.9 million) is co-arranged with the Asian Infrastructure Investment Bank, each contributing Rs 7.3 billion, according to ADB’s statement on Thursday.

This project aligns with India's goal of achieving at least 500 gigawatts of non-fossil fuel energy capacity by 2030. "The private sector’s engagement in the fight against climate change is pivotal for achieving a clean energy transition in Asia and the Pacific", said Suzanne Gaboury, ADB’s Director General for Private Sector Operations.

The collaboration underscores ADB’s commitment as the region's 'climate bank' to support renewable energy projects by offering long-term local currency financing, often not available in domestic capital markets. This initiative marks ADB's second financing venture with ENGIE in India, following their first project in 2020.

The solar panels, incorporating bifacial photovoltaic technology, will be constructed using locally sourced modules, enhancing the domestic supply chain and supporting Indian manufacturers. Over its 25-year lifespan, the plant is expected to generate an average of 805 gigawatt-hours annually, reducing carbon dioxide emissions by approximately 662,441 tonnes each year.