International Finance Corporation has committed to part finance a 550 MW solar power project in Bikaner, Rajasthan, being developed by Brookfield Asset Management with $105 million through long-term non-convertible debentures allocated to the project’s special purpose vehicles.

“Following IFC’s commitment, Brookfield will provide solar power to commercial and industrial consumers across India at more competitive tariffs through long-term power purchase agreements (PPAs) and contribute to the nation’s decarbonisation goals,” a release said.

This is IFC’s first investment in Asia and the Pacific using a hybrid offtake structure where the project sells the power generated to C&I consumers under long-term corporate PPAs and merchant market via exchange.

The project will be connected to the inter-state transmission system of India’s green energy corridor.

“Through our partnership with Brookfield, IFC aims to facilitate the broader uptake of clean energy by demonstrating the viability of large-scale renewable energy generation, and sale to pan-India corporate and industrial clients, through the interstate transmission system,” said Imad N. Fakhoury, IFC’s Regional Director for South Asia.

Solar plants are also expected to annually mitigate greenhouse-gas emissions by 8,04,408 tonne of CO2, equivalent to taking over 1,73,680 cars off the road every year.

India is at the forefront of a green transition in the energy sector, having pledged to increase its non-fossil fuel capacity to 500 GW by 2030. The country’s renewable energy sector has already attracted about $10 billion in annual investments between 2017 and 2022, and is expected to generate annual investments of $25 billion through 2030.

“With a portfolio of over 25 GW of renewable power assets in operation or in development across leading platforms in the country, we look forward to capitalising on the scaled transition opportunities on offer in the country,” said Nawal Saini, Managing Director, Renewable Power & Transition, Brookfield.

Since 2010, IFC has invested $2.79 billion in multiple projects to strengthen renewable energy and energy efficiency sectors in India.