With the rapid growing electricity demand, and increasing reliance on imported sources of fossil fuel the Government of India and the Asian Development Bank (ADB) signed an agreement for a $100 million ADB loan (A LIBOR based loan from ADB’s Ordinary Capital Resources which has a term of 25 years including 5 years of grace period) to develop a transmission system that will distribute 500 megawatts of solar power from the Charanka Solar Park in Gujarat.
ADB is committed to generating 3,000 MW of solar power by 2013 under its Asia Solar Energy Initiative.
Key Objectives of the Project:
- Using an inventive Public Private Partnership (PPP) model, the project will create job opportunities, improve social services and contribute to poverty reduction locally.
- It will also support power distribution companies in Gujarat and other Indian power utilities to meet part of their energy needs through solar energy.
- It will not only benefit Gujarat, but will also help develop the PPP solar park model under the Jawaharlal Nehru National Solar Mission.
- An associated Technical Assistance (TA) funded by the Department for International Development of the United Kingdom and administered by ADB will provide professional training in energy-related skills and livelihood opportunities to local people. At least half of the participants will be women.
Note: The Indian Government is aiming to generate 20,000 MW of solar power by 2022. It has launched the Jawaharlal Nehru National Solar Mission (JNNSM) in 2010, which is expected to generate 1,000 MW by 2013 by expanding grid-connected solar power generation.