Shalivahana Green Energy has won the support of the International Finance Corporation (IFC) in its plans to build 200 MW of new biomass-fired power capacity across five Indian states.
The IFC has announced that it will provide $15 million in equity financing to Shalivahana, one of India’s largest biomass power companies, and will also commit to the purchase of up to 1.5 Certified Emission Reductions (CERs) from energy projects developed by Shalivahana.
Shalivahana is planning to expand existing biomass power projects in the states of Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa, and Tamil Nadu by a total of 200 MW. The support of the IFC will help the firm to move forward with its business plans in spite of uncertainty in the global carbon market, says Shalivahana.
“IFC’s support will help us raise funds, adds credibility to our work, and raise the generation capacity of our portfolio over the next four years,” said M. Komaraiah, Chairman and Managing Director of Shalivahana Green Energy, whose biomass power plant portfolio currently stands at 50 MW.
“Improving access to regular and clean power supply is a key strategic priority for IFC in India. Our Post-2012 Carbon Facility provides the Shalivahana Group with a high-quality revenue stream from CERs up to 2020 to strengthen the viability of their projects,” said Thomas Davenport, IFC Director for South Asia.
As a onsequence of the Indian government's having made adoption of renewable purchase obligations mandatory, state distribution utilities, open-access consumers, and captive power plants are required to buy a certain portion of their power purchases from renewable-energy sources.
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