ADB and ReNew Partner on $331M Hybrid Clean Energy Project in Andhra Pradesh
ReNew, one of India’s largest independent producers of renewable energy, will design, construct, and operate the project.
- Country:
- India
In a major step toward advancing India’s renewable energy capacity, the Asian Development Bank (ADB) has signed a $331 million financing package with ReNew Vyoman Power Private Limited for the development of an 837-megawatt (MW) wind-solar hybrid power plant combined with a 415-megawatt-hour (MWh) battery energy storage system (BESS) in Andhra Pradesh, India.
The project, the first “round-the-clock” peak renewable energy project financed by ADB, aims to supply 300 MW of firm, dispatchable power — guaranteeing both peak and baseload energy — while significantly enhancing grid stability and supporting India’s clean energy transition.
A Landmark $331 Million Green Investment
Under the financing structure, ADB will provide a ₹25.78 billion local currency loan (equivalent to $291 million) from its ordinary capital resources, and an additional $40 million from the Leading Asia’s Private Infrastructure Fund 2 (LEAP 2), which ADB administers. The total debt financing for the project will reach $477 million, with ADB serving as the mandated lead arranger for the transaction.
The signing ceremony took place in the presence of ADB Vice-President for Market Solutions Bhargav Dasgupta and ReNew’s Founder, Chairman, and CEO Sumant Sinha. Both leaders emphasized the strategic significance of this collaboration for India’s renewable energy ambitions.
Setting New Standards in Renewable Reliability
Mr. Dasgupta hailed the partnership as a milestone in Asia’s renewable energy financing landscape.
“This is the first round-the-clock peak renewable energy project to be financed by ADB,” he said. “By integrating battery energy storage systems with hybrid wind-solar generation, we are ensuring firm and reliable clean power, improving grid stability, and accelerating India’s sustainable energy transition.”
He added that the project demonstrates ADB’s evolving role in helping developing economies move beyond traditional renewables toward flexible, grid-integrated systems that can supply power even when the sun isn’t shining or the wind isn’t blowing.
ReNew’s Vision for a Reliable Clean Energy Future
ReNew, one of India’s largest independent producers of renewable energy, will design, construct, and operate the project. With 11.2 gigawatts (GW) of operational capacity and another 7.3 GW under construction, ReNew continues to be at the forefront of India’s clean power expansion.
ReNew’s CEO Sumant Sinha underscored the project’s importance in redefining the future of renewable energy delivery:
“India is entering a new phase in clean energy transition, defined not only by scale, but by reliability and flexibility,” Sinha said. “This project proves that renewable energy can now deliver round-the-clock, grid-scale power competitively. Our collaboration with ADB has helped us consistently push the boundaries of innovation in clean energy infrastructure.”
Sinha also emphasized the alignment of the project with India’s climate goals, including its target to achieve 500 GW of renewable capacity by 2030 and reach net-zero emissions by 2070.
Delivering Round-the-Clock Power and Grid Stability
This hybrid power facility represents a new generation of renewable infrastructure, combining wind and solar sources with advanced battery storage technology to deliver guaranteed baseload and peak power. Such integration ensures that clean energy can be dispatched when it’s needed most, reducing dependence on coal-fired plants and strengthening the reliability of India’s national grid.
For India — the world’s third-largest producer of electricity and also one of its largest emitters of greenhouse gases — hybrid renewable projects with battery storage mark a transformative step. They not only contribute to decarbonization but also address the intermittency challenges that have long hindered the large-scale adoption of renewables.
ADB and LEAP 2: Driving Sustainable Infrastructure Investment
The financing package also highlights the growing role of blended finance and public–private partnerships in the energy transition.
The LEAP 2 Fund, managed by ADB and backed by the Japan International Cooperation Agency (JICA) with a $1.5 billion commitment, focuses on supporting sustainable infrastructure projects across Asia. Since its establishment in 2023, LEAP 2 has prioritized investments that reduce carbon emissions, enhance energy efficiency, and improve access to essential services such as health, education, and communications in developing member countries.
Through LEAP 2 and other mechanisms, ADB continues to position itself as a leading enabler of private-sector-led climate action, complementing government initiatives and accelerating the shift toward low-carbon economies.
Reinforcing India’s Energy Transition
India’s rapid economic growth has created soaring energy demand, prompting the government to expand renewable generation while reinforcing transmission and distribution systems. The ReNew–ADB partnership directly supports these national goals, demonstrating how integrated renewable energy systems can balance supply, reliability, and affordability.
The Andhra Pradesh hybrid project will not only provide clean energy but also create local jobs, stimulate regional investment, and contribute to energy security. Once operational, it will play a vital role in stabilizing India’s grid and reducing the carbon footprint of one of the world’s fastest-growing economies.
A Model for the Future of Clean Energy
This project represents a new paradigm for renewable energy deployment — one that combines innovation, financial strength, and sustainability. It sets a precedent for future round-the-clock renewable power projects across Asia, blending solar, wind, and storage to provide reliable, low-emission electricity at scale.
“This landmark project underscores ADB’s commitment to catalyzing private investment for sustainable growth,” said Mr. Dasgupta. “It also reflects our shared vision with ReNew — to make clean power the foundation of Asia’s future prosperity.”
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