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ADB Considering Loans for 580-Megawatt Solar Power Project in Gujarat solar park- India

According to this report from Bloomberg, the Asian Development Bank may provide loans to a 580-megawatt solar power park in India’s Gujarat state as the country aims to increase its solar power capacity to meet growing demand.

ADB Considering Loans for 580-Megawatt Solar Power Project in India

The Asian Development Bank may provide loans to a 580-megawatt solar power park in India’s Gujarat state as the country aims to increase its solar power capacity to meet growing demand.

The solar power park is being developed in Charanka village by the Gujarat state government, Naoki Sakai, a senior climate change official from the bank, said in a Dec. 22 telephone interview from Manila, where the lender is located. The project will use both solar photovoltaic and solar thermal power, he said.

For solar photovoltaic projects, energy from the sun is converted directly to electricity, while in solar thermal projects, the sun’s energy is used to make steam which is then used to generate power.

“We already provide some portion of technical assistance” to the project, Sakai said. The bank is exploring the possibility of providing financial assistance including a loan, he added.

He declined to say the amount of the loan the bank is considering, saying that it has not made any decision on financial assistance.

As Panchabuta has repoted a while back , Charanaka, a village nestled in a remote corner of Patan district in north Gujarat is destined to become the state’s hub of solar power generation. Solar panels will be laid on close to 3,000 acres of land in this village, where the state government is going to set up a ‘ Gujarat Solar Park’ at an investment of Rs 8,000 crore.

As Panchabuta has mentioned earlier, Asian Development Bank (ADB)  had originally expressed its concern and felt that  Solar Power Projects under JNNSM could face funding problem. Since, ADB has been looking at ways it could participate in the funding of Solar projects in India. Since, ADB announced, that it plans to back $425 million worth of investments in India’s solar power plants to help the projects secure financing.

ADB has also recently announced  a joint venture with NTPC and  Kyushu Electric Power Japan to set up 500MW renewable power in 3 years in India.

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