The International Finance Corporation (IFC), a member of the World Bank Group, has committed Rs 460 crore to IndiGrid for developing India’s largest standalone battery energy storage system (BESS) project in Gujarat. This project marks a major step forward in the country’s clean energy transition.
Structure of the Investment
IFC will provide the funding through listed non-convertible debentures. The total investment includes USD 38.5 million from IFC’s own account and an additional USD 16.5 million in concessional financing sourced from the Clean Technology Fund, part of the Climate Investment Funds framework.
Supporting Renewable Energy Goals
The BESS project will play a crucial role in improving grid reliability by storing excess renewable energy and releasing it during periods of peak demand. This aligns with India’s national target of achieving 500 GW of renewable energy capacity by 2030. Additionally, it supports Gujarat’s ambitious goal of developing 100 GW of renewable energy.
As per Projects Today, this strategic initiative not only strengthens energy infrastructure but also demonstrates increasing investor confidence in clean technologies.
Industry Leaders Voice Support
IFC South Asia Regional Director Imad N. Fakhoury highlighted the importance of battery energy storage in enabling a diversified energy mix. Meanwhile, IndiGrid Managing Director Harsh Shah emphasized the significance of the BESS project. He called it a pivotal milestone in the journey toward next-generation clean energy infrastructure.
