Indian renewable energy project developer SAEL has signed a US$132 million loan for the development of a solar power project in Andhra Pradesh.

The debt is being provided by the Asian Infrastructure Investment Bank ( AIIB ), New Development Bank ( NDB ), and Société Générale, with each contributing US$44 million. The borrower is SAEL Solar MHP1, a subsidiary of SAEL Industries.

The project was awarded through a competitive auction organized by the Solar Energy Corporation of India. The funds will be used to execute and operationalize the solar power project, supporting India’s goals for expanding renewable energy and strengthening clean energy infrastructure in Andhra Pradesh.

SAEL Industries has a big presence in the Indian renewable energy sector, with a 6.5-gigawatt portfolio of solar independent power producer projects, including both operational and in-development assets. The company also owns solar module manufacturing plants, and has engineering, procurement and construction ( EPC ) capabilities. In addition to solar energy, SAEL operates an agricultural waste-to-energy business.

“These funds represent a major development for SAEL Industries as we continue our efforts to deliver sustainable clean energy solutions that facilitate India’s transition to a low-carbon future,“ says SAEL Industries chief executive officer Laxit Awla.

“The support from these institutions reflects confidence in our technical expertise and financial credibility to execute energy infrastructure. We are aligned with the state’s mission to drive forward the clean energy transition and economic development in Andhra Pradesh with this solar project.”

India has been one of the world’s fastest-growing economies over the last decade, and its GDP is forecast to grow over 6% annually over the next five years. New Development Bank says a reliable energy supply is an essential component in achieving this growth rate.

India’s energy consumption ranks third globally. As of June 2024, the country had an installed capacity of 446GW, with peak demand of 250GW. Fossil-fuel power plants account for 54% of the installed capacity while renewable energy ( solar and wind ) accounts for 33%, or 148GW. The rest is made up of hydro, nuclear, and biogas/waste.

The government aims to reach net-zero emissions by 2070. It has also announced a target of 500GW of renewable energy by 2030, thereby reducing the economy’s emissions intensity by 45%.