IFC Invests $105 Mn In Brookfield's 550 MW Solar Project In Rajasthan

The International Finance Corporation (IFC) has announced a $105 million investment to help finance a 550 MW solar power project in Bikaner, Rajasthan, developed by Brookfield Asset Management. 

The financing will be provided through long-term non-convertible debentures allocated to the project's special purpose vehicles. This investment marks IFC's first in Asia and the Pacific utilising an innovative hybrid offtake structure, where the project will sell power to corporate and industrial (C&I) consumers under long-term corporate power purchase agreements (PPAs) and to the merchant market via exchange. The project will be connected to India’s green energy corridor through the inter-state transmission system.

“Through our partnership with Brookfield, IFC aims to facilitate the broader uptake of clean energy by demonstrating the viability of large-scale renewable energy generation, and sale to pan-India corporate and industrial clients, through the interstate transmission system,” said Imad N. Fakhoury, IFC's Regional Director for South Asia.

Nawal Saini, Managing Director of Renewable Power & Transition at Brookfield, noted the increasing corporate demand for clean energy in India, with over 5 GW of renewable capacity added for the C&I sector in the past year. Brookfield plans to use its operational expertise to expand its renewable energy footprint in India, focusing on both state utility and C&I segments.

Since 2010, IFC has invested USD 2.79 billion in projects to strengthen the renewable energy and energy efficiency sectors in India. The country’s renewable energy sector has attracted around USD 10 billion in annual investments between 2017 and 2022, with expectations for annual investments to reach USD 25 billion by 2030. Approximately 20 per cent of this investment is projected to be directed towards the C&I and merchant market segments.