IFC to invest $4 mn for green energy

The International Finance Corporation (IFC) will invest $4 million in Moser Baer Clean Energy Limited subsidiary Sapphire Industrial Infrastructures Private Limited. The proposed investment is aimed at implementing the country’s first large-scale grid-connected thin-film solar plant located in Tamil Nadu.

It may be noted this plant is also South Asia’s largest plant. The new plant will help bolster clean energy locally and provide additional electricity to about 11,000 people.

The investment will support construction of the 5-megawatt solar plant at Sivaganga in Tamil Nadu, a southern state in India. The plant, with a capacity of 8 million units of power a year, is expected to stop the production of approximately 6,600 tonnes of greenhouse-gas emissions annually.

Moser Baer Clean Energy Limited (MBCEL), a subsidiary of Moser Baer Projects Private Limited (MBPPL), has commissioned the country’s largest solar plant with a capacity of 5 Mw, in Tamil Nadu. The estimated cost of setting up the farm is around Rs 70-75 crore. The technical expertise for commissioning was provided by the Engineering Procurement Commissioning (EPC) arm of Moser Baer Solar Limited. The International Finance Corporation and the IDBI bank has provided debt for the project.

“As demonstrated through its support, IFC recognises the potential of large-scale solar-power generation to help meet India’s enormous energy needs,” said Rajya Ghei, Country Head Solar Farms, Moser Baer Clean Energy Limited. The learning from this project will help us replicate similar projects in other Indian states, he added.

Until recently, grid-connected solar electricity received limited interest from private sector due to higher initial investment and generation costs than conventional energy sources.

“India is keen to diversify its energy mix by pursuing climate friendly renewable technologies. The successful commissioning of this first large-scale thin film solar photo-voltaic plant demonstrates private sector’s ability to rise to the challenges associated with achieving a balanced energy mix,” said Anita George, IFC Director for Infrastructure in Asia in a statement.

She further said, it also confirms the availability of the right technical expertise and the requisite financial capacity in the market for successfully delivering projects in this sector in India.

IFC acted as an implementing agency of the Global Environment Facility to support thin-film technology in India. The Global Environment Facility is a network of international institutions, nongovernmental organisations, and private sector that provide funding to address global environmental issues. The Global Environment Facility has provided $30 million in concessional funds to IFC, as a part of the Photovoltaic Market Transformation Initiative, to encourage market development for photovoltaics.