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The US Export-Import Bank has approved $80 million in export financing for a solar project in India. Supporting US jobs at companies in eight States, the bank's board of directors approved $80.32 million direct loan for the purchase of ‘concentrated solar power technology' by Reliance Power in Rajasthan.
The project — Rajasthan Sun Technique Energy Private Ltd — is a subsidiary of Reliance Power and is being co-financed by the Asian Development Bank and FMO, the Dutch development bank.
Since last year, the bank has financed seven Indian solar power generating projects. With today's transaction, the bank's total authorisations for these projects is $256.7 million, supporting 205 MW.
Renewable energy generating equipment
This will generate enough electricity to power about 2,50,000 homes in India.
While accompanying the US President, Mr Barrack Obama, on his trip to India in November 2010, the bank's Chairman and President, Mr Fred P. Hochberg, signed a $5-billion agreement with Mr Anil Ambani, Chairman of Reliance Power.
This proposed to purchase of 900 MW of renewable energy generating equipment, in addition to the purchase of 8,000 MW of gas-fired technology from US manufacturers and service providers over a period of five years.
Since then, the bank has financed $760 million in three Reliance Power renewable energy transactions supporting 165 MW of solar and 2,400 MW of gas, the bank said.
US companies potentially involved in the transaction include AREVA Solar; E.I. DuPont de Nemours and Co, Clifford Chance Rogers Wells LLP, 3M Company, Sika Corp, CCI Corp, Certainteed Corp, Huck International Inc. and Weed Instrument Company Inc.
Domestic demand for solar power
The domestic demand for solar power is partly due to the national solar initiative, the Jawaharlal Nehru National Solar Mission. The initiative's objective is to bring 20,000 MW of installed solar capacity into the nationwide grid by 2020.
Nearly 70 per cent of the energy installed capacity will be renewable energy in the country, the bank said.
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