IFC to Finance Brookfield’s Bikaner Solar Power Project, Boosting India’s Renewable Energy Capacity

To support India in scaling up its renewable energy capacity, International Finance Corporation (IFC) has committed to part finance a ~550 MWp solar power project in Bikaner, Rajasthan being developed by Brookfield Asset Management (Brookfield) with US$105 million through long-term non-convertible debentures allocated to the project’s special purpose vehicles, which are implementing the project.

Following its commitment, Brookfield will provide solar power to commercial and industrial (C&I) consumers across India at more competitive tariffs through long-term power purchase agreements (PPAs) and contribute to the nation’s decarbonization goals.

This is IFC’s first investment in Asia and the Pacific using an innovative 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 section of India’s green energy corridor. Solar plants are also expected to annually mitigate greenhouse-gas (GHG) emissions by 804,408 tons of CO2, equivalent to taking over 173,680 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 US$10 billion in annual investments between 2017 and 2022 and is expected to generate annual investments of US$25 billion through 2030. Of this, around 20% is estimated to be directed towards the C&I and merchant market.

“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. “The novel procurement options underscore the role of hybrid transactions in scaling up investments in renewables, increasing market competitiveness, and offsetting the energy sector’s carbon footprint—key to achieving India’s climate goals.”

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