AIIB approves US$50 million for Enel Green’s 300 MW solar project 

Beijing-headquartered Asian Infrastructure Investment Bank (AIIB) has agreed to invest US$50 million in a 300 MW grid-connected solar power project by Italy’s Enel Green Power.

Enel, through its subsidiary EGP India, is setting up the plant in the Indian State of Rajasthan to supply the power contracted under a 2 GW solar auction by Solar Energy Corporation of India (SECI). The project involves the development, construction, and maintenance of a 300 MWAC solar power project in the Bikaner District.

SECI will sign a 25-year contract with the developer to procure the solar project’s output.

The total project cost is approximately US$200 million. Out of which, AIIB loan is about US$50 million and the rest is to be funded by the sponsors and other financial institutions.

The proposed project is being considered alongside IFC and has been prepared following IFC Sustainability Framework comprising the Policy on Environmental and Social Sustainability, Performance Standards (PSs), and Access to Information Policy. 

The project has been assigned Category “B” in accordance with IFC PSs, which is equivalent to Category B if AIIB’s Environment and Social Policy were applicable, due to the potentially limited adverse environmental and social risks and impacts that are generally site-specific, largely reversible, and readily mitigated through the implementation of good international industry practices.

The project is estimated to result in the avoidance of GHG emissions of approximately 592,174 tons of CO2 equivalent annually.