The Asian Development Bank will lend US$113 million to a Hong Kong company to develop two windfarms in India.
ADB will extend the rupee-denominated loan to an Indian subsidiary of CLP Holdings to fund development of wind facilities in the states of Gujarat and Karnataka. The windfarms will cost $250 million (Rs9.9 billion) and private sponsors will use internal funds and long-term debt from other sources to cover the balance.
“This project will help India’s economic growth and energy diversification in an environmentally sustainable manner,” explains Shantanu Chakraborty of ADB. “It will also help enhance private sector participation in energy generation by demonstrating the successful implementation of large-scale wind power projects.”
By 2030, energy demand around the world is expected to increase by 53% from current levels, and developing countries in Asia represent a large portion of this increased demand. The pattern of energy investment in developing Asia is strongly carbon-intensive and India is the third-largest electricity consumer on the continent, behind the People’s Republic of China and Japan.
Coal-fired and other thermal power plants provide two-thirds of the installed capacity, with hydropower generating 26% of capacity. India is ranked #4 in the world for installed wind generation, behind Germany, the US and Spain. As of September 2007, it had 7,200 MW of installed wind turbines against its potential for 45,000 MW.Gujarat and Karnataka are two of the leading states for wind but they suffer from significant power shortages. Both states are rated as high potential for wind due to long coastlines and suitable inland areas, and the new projects will add 183 MW in capacity.
These two wind projects are part of a recent series of projects in which ADB, partnering with India’s private sector, is helping the government to meet a goal of power to all residents by 2012.
ADB is dedicated to poverty reduction in Asia and the Pacific, and was established in 1966 by 67 member countries. It contributes low-interest loans and grants to build infrastructure for the 1.9 billion people in the region who live on less than $2 a day.