The Asian Development Bank (ADB) is planning to release $150 million in loans to the Rajasthan state government to partly finance a transmission network for carrying electricity generated for large-scale solar and wind energy projects.
The proposal is a part of the drive initiated by India government towards setting up a renewable energy infrastructure for expansion in renewable energy capacity.
In total, it is a $500 million contract out of which ADB will finance $150 Million for the development of renewable power transmission corridor in the state.
The Rajasthan government will donate $127 million towards the project.
In India, solar energy sources are mostly concentrated in the northwest whereas wind energy production is based on west and southern states. The Rajasthan region of the renewable energy network is just a small part of the national renewable energy sector.
According to India government’s new program, arid, barren wastelands across the states will be used to set up large-scale wind and ultra- mega solar power projects with installed capacity of up to 4,000 MW.
According to the renewable purchase obligation, power utilities in every state need to procure a set minimum percentage of electricity from renewable energy projects.
A committed transmission network is helpful for renewable energy to be supplied to resource-deficient states from surplus power states.
On the other hand, about half of India’s power capacity is located in Rajasthan and Gujarat, with implemented policies that offered easy access of transmission network to the project developers.