ADB grants loan to Reliance Power for solar power project in Rajasthan

The project is expected to be completed by the second quarter of 2012.

Rajasthan has one of the highest levels of solar irradiation in India.

Mr Michael Barrow director in ADB’s Private Sector Operations Department said that "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.”

Reliance Infrastructure Ltd will buy the electricity under a long term power purchase agreement to fulfil its renewable purchase obligations set by electricity regulators the first fully private sector transaction for solar power. The power will be distributed to households in Mumbai.

The plant marks RPower’s entry into the solar energy business and is part of the company’s plans to expand the renewable energy portfolio.

The Export Import Bank of the US is also providing funding for the project that is expected to cost around USD 147 million. The project will support the government’s push to promote environmentally sustainable energy growth while diversifying the country’s sources of energy.

www.adb.org/