ADB extends $175 million loan to India’s PGCIL
The Asian Development Bank (ADB) has approved a $175 million loan to the Power Grid Corporation of India Limited (PGCIL) to upgrade the country’s solar power transmission network.
The new funding will help improve the capacity and efficiency of the interstate transmission networks, especially in feeding electricity generated from solar parks to the national grid, said a statement by the ADB.
Furthermore, the ADB will provide a $50 million co-financing loan from multi-donor funding agency the Clean Technology Fund, a component of the $5.8 billion climate investment fund, following last year’s $500 million loan for India’s solar rooftop sector.
“India, with its mandate of achieving a more sustainable future, is leading the lines in achieving energy security while increasing energy capacity and supply through renewable sources such as solar energy,” said Kaoru Ogino, ADB principal energy specialist. “We are looking forward to the benefits of this partnership with PGCIL to continue helping India achieve a more inclusive and sustainable future.”
India’s state-owned electric utility PGCIL will use the funds to upgrade transmission of power generated by the solar parks in Bhadla, Rajasthan and Banaskantha, Gujarat, whose capacity stands at 2,500 MW and 700 MW respectively, and also back two additional subprojects that will increase solar power generation by 4.2 GW.
Although red tape and inadequate infrastructure appear to be major stumbling blocks on the country’s energy transition road, India is staying true to its ambitious blueprint to reach 100 GW of solar by 2022