ADB Fuels India's 24/7 Clean Energy Transition with Landmark $331 Million Deal for Hybrid Power and Storage
SDG 7: Affordable and Clean Energy | SDG 9: Industry, Innovation and Infrastructure | SDG 17: Partnerships for the Goals
Institutions: Ministry of New and Renewable Energy
The Asian Development Bank (ADB) has signed a $331 million finance package with ReNew Vyoman Power Private Limited (a ReNew subsidiary) for a large-scale clean energy project in Andhra Pradesh. This landmark deal supports India’s clean energy transition, which the CEO of ReNew stated is now defined by reliability and flexibility, not just scale. The total debt financing for the project is expected to reach $477 million.
Project Scope: The project integrates 837-megawatts (MW) of wind and solar capacity with a 415 megawatt-hour (MWh) Battery Energy Storage System (BESS) facility.
Key Deliverable: It is specifically designed to deliver 300 MW of round-the-clock peak power and guaranteed baseload energy, significantly enhancing grid reliability. ADB confirmed this is the first round-the-clock peak renewable energy project it has financed.
Financing Detail: The ADB debt package includes a substantial ₹25.78 billion local currency loan (equivalent to $291 million) from ADB’s ordinary capital resources, plus up to $40 million from the ADB-administered Leading Asia’s Private Infrastructure Fund 2 (LEAP 2).
This financing sets a new benchmark for firm, dispatchable renewable energy infrastructure in India. It accelerates the country’s goal of expanding its renewable portfolio while simultaneously addressing the critical challenge of grid stability—a crucial prerequisite for meeting peak power demands and reducing reliance on traditional thermal resources.
What is a Battery Energy Storage System (BESS)?→ A BESS is a technology that stores electrical energy produced from intermittent sources (like wind and solar) in rechargeable batteries for later use. The integration of BESS with wind-solar hybrid systems is a “game-changer” because it ensures firm, reliable, and dispatchable clean power, allowing renewable energy to meet guaranteed baseload and reliable peak power requirements.
Relevant Question for Policy Stakeholders: Following this successful financing model, how will the Ministry of Power accelerate grid modernization and regulatory mechanisms to integrate battery storage across all large-scale hybrid renewable projects in India?
Follow the full news here: ADB Fuels India's 24/7 Clean Energy Transition