The Danish state-owned Investment Fund for Developing Countries (IFU) has signed a shareholder’s agreement with the India-based ACME Group and the United Nations Office for Project Services (UNOPS).
Under the agreement, IFU will acquire a 39% stake in a 250MW solar power plant in Rajasthan owned by ACME.
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UNOPS will invest in the project through its Sustainable Investments in Infrastructure and Innovation (S3i) initiative.
IFU invested in the project on behalf of the Danish SDG Investment Fund, which is backed by the Danish state, as well as large Danish pension funds and other private investors.
IFU Investment Director Rahul Dubey said: “The investment is in line with our ambition to create green, just and inclusive societies because it will assist India in its green transition and provide additional energy supply to more people in India, allowing them to improve their livelihood.”
The $178m (€150m) solar project, which is being developed by ACME Solar, will have the capacity to generate 675GWh of clean energy a year, enough to power 500,000 households.
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By GlobalDataIt will also have the capacity to offset 500,000t of carbon emissions.
The project is expected to create 225 direct jobs during the construction phase and 75 permanent jobs during operation.
Upon completion, the solar facility will add 250MW of solar power capacity to India’s national grid.
The project also has a 25-year power purchase agreement in place with the Solar Energy Corporation of India.
In another development, India has reportedly extended a $100m Line of Credit to Sri Lanka. This will help Sri Lanka finance solar energy projects and meet 70% of its power requirements with renewable energy sources by 2030.
Some of the projects to be funded by the Line of Credit were announced during the International Solar Alliance’s (ISA) founding conference in March 2018.
