IFC Commits USD 105 Million to Support Brookfield's 550 MWp Solar Project in Rajasthan

The International Finance Corporation (IFC) has pledged USD 105 million to part-finance a 550 MWp solar power project in Bikaner, Rajasthan. The project, developed by Brookfield Asset Management, will benefit from IFC’s long-term non-convertible debentures allocated to the project's special purpose vehicles.

This strategic investment aims to provide solar power to commercial and industrial (C&I) consumers across India at competitive tariffs through long-term power purchase agreements (PPAs). By doing so, Brookfield will contribute significantly to India's decarbonization goals. The project is expected to connect to the inter-state transmission system section of India’s green energy corridor, playing a critical role in the nation's renewable energy infrastructure.

Once operational, the solar plants are projected to annually mitigate greenhouse gas (GHG) emissions by 804,408 tons of CO2, equivalent to removing over 173,680 cars from the road each year. This substantial reduction in emissions underscores the environmental benefits of scaling up renewable energy projects.

"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. 

India has pledged to increase its non-fossil fuel capacity to 500 GW by 2030. Between 2017 and 2022, the country's renewable energy sector attracted about USD 10 billion in annual investments and is expected to generate annual investments of USD 25 billion through 2030. Approximately 20 percent of these investments are projected to be directed towards the C&I and merchant market.

This investment marks IFC's first foray into Asia and the Pacific using an innovative hybrid offtake structure, where the power generated is sold to C&I consumers under long-term corporate PPAs and to merchant markets via exchange. Since 2010, IFC has invested USD 2.79 billion in multiple projects to strengthen the renewable energy and energy efficiency sectors in India.