Radiance Renewables develops solar project in Maharashtra

Radiance Renewables, a company owned by the Green Growth Equity Fund and supported by EverSource Capital, has successfully obtained a Green Loan Project Finance Facility worth $90 million. This funding will be utilized for the development of a 150 MW (AC) greenfield commercial and industrial (C&I) solar power project located in Maharashtra.

The collaboration between Axis Bank and Standard Chartered Bank was established to facilitate the implementation of a green loan. Standard Chartered Bank assumed responsibility for ensuring compliance with various standards and principles related to green loans, including the Loan Market Association's Green Loan Principles, IFC Performance Standards, and Equator Principles. The project with a capacity of 150 MW is currently advancing through two distinct phases. The initial phase, which encompasses 50 MW, is nearing its final stages of development, while financing arrangements have been successfully concluded for both phases. The company has entered into a 25-year energy supply arrangement with a multinational data centre company located in Maharashtra.

This progress highlights the company's emphasis on a process-oriented approach, concentration on environmental, social, and governance (ESG) factors, and its capability to effectively implement strategies. Our portfolio consists of over 15 lenders, and we are dedicated to strengthening our collaboration with them by diligently adhering to all relevant rules, upholding global environmental, social, and governance (ESG) principles, and ensuring effective implementation.

Radiance Renewables now possesses an operational capacity of approximately 500 MW and intends to augment this capacity to 2 GW within the forthcoming three-year period. The introduction of a framework by the Reserve Bank of India, starting from June 1, 2023, allows banks and other financial institutions to accept 'Green Deposits.' This initiative aims to encourage green finance, combat greenwashing, and support renewable energy projects.

The framework places significant emphasis on ensuring compatibility with the green taxonomy specific to India. Canara Bank introduced its Green Deposit Policy in August, in accordance with the rules set by the Reserve Bank of India (RBI), with the objective of directing funds towards solar and wind energy initiatives.

In the fiscal year 2023, the institution extended loans of ₹556 billion (~$6.7 billion) to various sectors, including but not limited to renewable energy, electric vehicles, and green-certified real estate, among other significant areas of financing. The portion of the lending portfolio allocated to green financing accounted for 21.4% or ₹119 billion (~$1.4 billion) of the overall loan amount.

News by Rahul Yelligetti