Wind Power Projects Add to ADB Effort to Help India's Private Sector Develop Cleaner Power Sources
MANILA, PHILIPPINES - The Asian Development Bank (ADB) and India’s private sector are developing two wind power projects to further build the South Asian nation’s access to cleaner energy sources. ADB is extending a rupee-denominated loan of $113 million equivalent to a wholly-owned Indian subsidiary of CLP Holdings of Hong Kong to fund development of two wind energy facilities in the Indian states of Gujarat and Karnataka. “This project will help India’s economic growth and energy diversification in an environmentally sustainable manner,” said Shantanu Chakraborty, Investment Specialist in ADB’s Private Sector Operations Department. “It will also help enhance private sector participation in energy generation by demonstrating the successful implementation of large-scale wind power projects.” By 2030, global energy demand is expected to rise by 53% from current levels, and developing Asia represents a large chunk of this increased demand. New energy infrastructure is being installed at unprecedented rates, but the pattern of energy investment in developing Asia is strongly carbon-intensive. India is the third largest electricity consumer in Asia behind the People’s Republic of China (PRC) and Japan. Thermal power plants, mostly coal-fired, provide 66% of the installed capacity. Hydropower accounts for 26% of capacity, with gas and oil-fired thermal power plants, renewable energy plants, and nuclear power plants providing the rest. The Gujarat and Karnataka wind power projects have a total estimated cost of Rs9.9 billion. ADB is loaning Rs4.45 billion, and the private sponsors will use internal funds and long-term debt from other sources to complete the funding requirements. India is ranked fourth in the world for installed wind power generation, behind Germany, the US, and Spain. As of September 2007, India had more than 7,200 megawatts (MW) of installed wind power capacity, but it has the gross potential for more than 45,000 MW. Gujarat and Karnataka, while two of the leading states in India for wind power generation, continue to suffer from significant power shortages. Both states hold greater potential for wind power projects due to long coast lines and suitable inland areas. The new projects will in aggregate add 183.2 MW in capacity in the two states. The two latest wind power projects are part of a recent series of projects ADB, in partnership with India’s private sector, is developing to bring cleaner sources of energy to India’s population, helping the Government meet its goal of “power for all” by 2012. About ADB | 
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