IFC, a member of the World Bank Group, today announced that it will lend $50 million to two wholly-owned subsidiaries of Continuum Wind Energy (India) to expand access to clean energy, and help reduce greenhouse gas emissions. IFC also helped mobilise a loan of $100 million for the project from YES Bank.
The financing will be used to construct a 170 megawatt wind power plant in Madhya Pradesh. The subsidiaries - D. J. Energy Private Limited and Uttar Urja Projects Energy Private Limited - will develop the project. The project will annually generate 330 gigawatt hours of clean power to reach 300,000 people. The project will help avoid nearly 270,000 tons of carbon dioxide emissions per year.
“We are delighted to receive support from IFC and YES Bank for our project. IFC’s long-tenor financing, global renewable-energy expertise and validation of our project will go a long way in contributing to the growth of Continuum,” said Arvind Bansal, CEO & Founder, Continuum Wind.
An estimated 300 million people, around one-fourth of India’s population, lack access to electricity. The country suffers from power shortages with peak hour gaps varying between 9 to 13 per cent. The government of India’s National Action Plan on Climate Change has set a target of generating 15 per cent of power from renewable energy sources by 2020.
In India, IFC has a committed portfolio of about $340 million in renewable energy projects. Serge Devieux, Regional Director for South Asia, IFC, explained how this investment fits into IFC’s goals in India.
“By supporting this wind project, IFC will help expand access to clean power for many. IFC’s investment in renewable energy in India will balance the country’s energy mix, and improve its energy security,” he said.
Continuum Wind, with the support of Morgan Stanley Infrastructure Partners, a global infrastructure investment fund, has achieved an aggregate operating capacity of about 150 MW, with 260 MW under construction and about 580 MW in development.