Financing options for solar power projects
International Finance Corporation (IFC), the financing arm of the World Bank are engaged with the financing of solar projects in India. Recently Acme Solar received the financing of their upcoming 25 MW solar power project from IFC. The total investment is estimated to be US$50 million, of which financing sought is of the order of US$36 million.MP Power Management Co. will purchase and utilise the plant under a 25 year power purchase.
EXIM bank financing is yet another attractive option for financing of solar power projects. First solar has been highly active in arranging the financing from EXIM Bank for which the PV modules were shipped form the US. EXIM has so far financed about $ 350 million to solar projects in last three year.
Anil Ambani group company Reliance Power has tied up funds for its 40 MW solar power project, with loans worth Rs 5.25 billion ($109.3 million) coming from the Asian Development Bank and the US Exim Bank.
Apart from these institutions, many green energy funds are also available which can provide equity at a cheaper rate and ease out the cost of financing for these solar projects.
The Asian Development Bank has emerged as the main lender to promote solar projects in India. European Investment Bank (EIB) has also expressed interest in financing solar park projects in India. ADB has also assisted the Gujarat government in the financing of the transmission line for evacuating the power generate from their Charanka Solar Park.