International Finance Corporation (IFC) is collaborating with IndiGrid to develop a renewable energy project in Gujarat. This project will be a battery energy storage project.
IFC will invest $55 million as long-term funding in IndiGrid. Out of this investment, $38.5 million is IFC’s own investment, and the rest $16.5 million is a low-interest loan borrowed from the CleanTech Fund.
This funding is a non-convertible debenture, that is, it cannot be converted to shares. This investment will help IndiGrid to develop a 180 MW/360 MWh battery energy storage system.
Significance of this Project
Battery storage systems are important as the stored energy can be utilized when sun energy is not available, be it at night or when the weather is cloudy and winds are not blowing. With frequent power cuts and electricity shortages, battery storage systems provide solutions.
Harsh Shah, Managing Director of IndiGrid, said, “With IFC’s collaboration, we are looking forward to building one of the country’s biggest battery storage projects in Gujarat. This project will support the modern energy system. The future of renewable energy is battery storage systems”.
Imad N. Fakhoury, Regional Director for South Asia at IFC, said, “Battery energy storage will help India meet its electricity demand during peak season and peak hours. Also, having reliable and affordable electricity is important for development in the country. Our investment aligns with Gujarat’s goal. Which is to develop 100 gigawatts of renewable energy by 2030. It will also be an example for other states.”
The new collaboration continues the strong relationship between IFC and IndiGrid. IFC has provided IndiGrid with total loan support of $380 million since 2023, which reflects their shared mission of successful clean energy solutions in India.
Sources
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