KfW financing 125 MW solar project in India

August 15th, 2011 | Posted in Solar

KfW Entwicklungsbank is financing what's touted as the largest solar PV power plant in the world. The Shivajinagar Sakri Solar Power Plant will be built in the Indian state of Maharashtra. The state's power company, Maharashtra State Power Generation Company, MAHAGENCO, has recently issued an RFP for the first 25 MW block of the new PV facility. When fully completed, the Shivajinagar Sakri power plant will have a total of 125 MW of installed capacity.

Additionally, the total capacity can be expanded by a further 25 MW to reach 150 MW eventually. The fact the power plant is being built in blocks, makes this fairly easy. The location of the power plant is great for harnessing the sun's energy. The area is one of the best locations for solar energy harvesting in the world. KfW will be financing the project with a total of EUR 250 million in funding, while the total cost of the project is estimated at about EUR 370 million. MAHAGENCO will contribute the remaining EUR 120 million in funding, in order to close the financing structure for the project.

India is pushing for renewable energy development with great effort. Its Jawaharlal Nehru National Solar Mission, which calls for 20 GW of solar capacity installed in India by 2020, is certainly taking effect, as there are more and more solar projects being announced for development in India. According to estimates, some USD 19 billion in total will be invested in the Indian solar industry, which will put India at a competitive level with China.

[source: KfW Bankengruppe]