IFC commits $105 million to Brookfield's Bikaner Solar Power project

International Finance Corporation (IFC), the private sector financing arm of the World Bank Group, on Monday committed USD 105 million (about Rs 870 crore) to Brookfield's Bikaner Solar Power project through long-term non-convertible debentures.

These debentures have been allocated to the project's special purpose vehicles, IFC said in a statement.

The 550 MW solar power project in Bikaner, Rajasthan, will help boost India's renewable energy capacity and support climate goals, IFC said in a statement.

Following its commitment, Brookfield will provide solar power to commercial and industrial (C&I) consumers across India at more competitive tariffs through long-term power purchase agreements (PPAs) and contribute to the nation's decarbonisation goals, it said.

This is IFC's first investment in Asia and the Pacific using an innovative hybrid offtake structure where the project sells the power generated to C&I consumers under long-term corporate PPAs and merchant market via exchange, it said.

The project will be connected to the inter-state transmission system section of India's green energy corridor. Solar plants are also expected to annually mitigate greenhouse-gas (GHG) emissions by 804,408 tons of CO2, equivalent to taking over 173,680 cars off the road every year, it said.

India is at the forefront of a green transition in the energy sector, having pledged to increase its non-fossil fuel capacity to 500 GW by 2030.

The country's renewable energy sector has already attracted about USD 10 billion in annual investments between 2017 and 2022 and is expected to generate annual investments of USD 25 billion through 2030.

Of this, around 20 per cent is estimated to be directed towards the C&I and merchant market.

"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," IFC's Regional Director for South Asia Imad N Fakhoury said.

With a portfolio of over 25 GW of renewable power assets in operation or in development across leading platforms in the country, we look forward to capitalising on the scaled transition opportunities on offer in the country," said Nawal Saini, Managing Director, Renewable Power & Transition, Brookfield.

Brookfield Asset Management Ltd is a leading global alternative asset manager with over USD 925 billion of assets under management across renewable power and transition, infrastructure, private equity, real estate, and credit.