CLP Holdings of Hong Kong, one of the largest energy utilities in Asia, will be given a $113-million loan by the Manila-based Asian Development Bank (ADB) to develop two wind farms in Gujarat and Karnataka.
Formerly called China Light and Power Company Ltd, CLP’s wholly-owned Indian arm will develop the farms as part of the financial institution’s efforts to promote clean energy sources among its member countries.
- They will generate 183.2 MW of electricity in the two states.
- This project will help India’s economic growth and energy diversification in an environmentally sustainable manner
- It will also help enhance private sector participation in energy generation by demonstrating the successful implementation of large-scale wind power projects
The Gujarat and Karnataka projects will have a total cost of some Rs.9.9 billion ($250 million), of which half will come from ADB as loans and the rest would be accounted for by private sponsors, internal funds and long-term debt.
The two farms are part of a recent series of ADB projects in partnerships with the Indian private sector to bring cleaner sources of energy, as also to help the government meet its goal of power for all by 2012.
India is already ranked fourth in the world for installed wind power generation, behind Germany, the US and Spain. As of September 2007, India had over 7,200 MW of installed wind power capacity, with gross potential for 45,000 MW.
As per ADB’s assessment, global energy demand is expected to rise by 53 percent by 2030 and developing Asia would represent a large chunk of the new needs with India already the third largest electricity consumer in Asia behind China.
Thermal power plants, mostly coal-fired, provide 66 percent of India’s capacity and hydro accounts for 26 percent. Gas and oil-fired thermal plants, renewable energy, and nuclear power provide the rest.