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"The new transmission lines connecting renewable energy-rich areas to the national grid will enhance connectivity between the regions by bringing clean energy to more people, making the overall Indian power system more efficient, and improving India's overall energy security," said Hun Kim, Director General of ADB's South Asia Department.

POWERGRID's funding needs for the interstate Green Energy Corridor exceed $3.4 billion, while enhanced overall interregional connectivity—critical not just for renewable energy but for large power transfers and power sector optimization—will require a further $10 billion.

In order to fund significant expansion plans and maintain affordability for consumers, companies like POWERGRID need to access all available and competitive sources, including multilaterals, international banks and capital markets.

"The combination of ADB's sovereign-backed and private sector loans is an innovative financing solution that provides POWERGRID with a large, competitive and efficient source of funding," said Todd Freeland, Director General of ADB's Private Sector Operations Department.

"Investment in India's transmission infrastructure complements ADB's assistance to other private sector energy projects by creating capacity for significant new energy generation, expanding opportunities for power trading, and generally improving the bankability of the renewables market."

ADB's financing will play an important role in helping the country achieve its ambitious renewable energy targets, as well as increasing overall interregional interconnection capacity.

ADB's presence as a key lender will also help to attract other potential commercial co-financiers and demonstrates ADB's ability to deliver financing solutions to companies like POWERGRID by accessing the combined knowledge and experience of its regional, country, and private sector operations.
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