ADB, Reliance Power to develop India’s largest solar PV power plant [Jan 2012]

The Asian Development Bank (ADB) and Reliance Power are joining forces to build India’s largest solar photovoltaic power plant. “India’s solar energy potential is one of the highest in the world and this plant will help kick start large-scale, private-sector solar electricity generation in the country,” said Michael Barrow, Director in ADB’s Private Sector Operations Department.
ADB to provide a long-term loan of up to $48 million to finance the 40 megawatt (MW) Dahanu Solar Power Project located in Jaisalmer district of Rajasthan. The state has one of the highest levels of solar irradiation in India. The Export Import Bank of the United States is also providing funding for the project that is expected to cost around $147 million.
Reliance Infrastructure Limited, a leading private distribution company, will buy the electricity under a long term power purchase agreement to fulfil its renewable purchase obligations set by India’s electricity regulators – the first time for a fully private sector transaction in solar power. The power will be distributed to households in Mumbai.
The plant marks Reliance Power’s first foray into solar energy and is expected to be completed by the second quarter of 2012.
The project will support the Government of India’s push to promote environmentally sustainable energy growth while diversifying the country’s sources of energy. By supplying electricity from a clean and renewable source, India will avoid around 41,000 tons of carbon dioxide emissions a year had demand been met by conventional fossil fuel-based power plants.
“As a part of its Asia Solar Energy Initiative, ADB aims to help develop, finance and commission 3,000 MW of solar power generation capacity in its developing member countries by mid 2013”, a press statement said.

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