The Asian Development Bank will lend $500 million to set up a transmission network that will carry power from clean energy projects in Rajasthan.
“ADB will provide $500 million to build a power transmission system needed to deliver clean electricity from wind and solar power projects in Rajasthan...to the state and national grids,” the Manila-based multilateral funding agency said in a release.
The system will involve 1,850 km of transmission lines, mostly in western Rajasthan, three new 400 kilovolt substations and nine new 220 kilovolt grid substations. The transmission capacity of seven existing substations will also be increased.
“Boosting renewable energy is important for Rajasthan and India to meet fast-growing energy needs in a way that is kind to the environment while also improving the country’s energy security by reducing reliance on imported fossil fuels,” said Len George, energy specialist in ADB’s South Asia Department.
The loan consists of a $498 million multi-tranche financing facility, including funds from the concessional Clean Technology Fund, and $2 million in a technical assistance grant.
The Rajasthan government and state transmission utilities will provide counterpart financing of about $300 million.
The Rajasthan Renewable Energy Corporation is developing the Bhadla solar park to house photovoltaic and solar thermal projects as part of the state’s objective to reach about 8,000 MW of solar energy and wind generation capacity by 2018.
Under the Jawaharlal Nehru National Solar Mission, the central government aims to develop 20,000 MW of solar power capacity across India by 2022.
Most of these projects are expected to come up in Rajasthan, which is home to over 80 per cent of the solar power capacity set up under the first phase of JNNSM, according to ADB.