UK Climate Investments

Supporting the build-out of green infrastructure.

Overview

Approximately 64 per cent of India’s electricity relies on fossil fuel-based sources of generation1. With the country’s energy demand set to grow rapidly over coming decades2, India is looking for new ways to power its continued economic development.

To demonstrate the role renewables can play in India’s future energy mix, UK Climate Investments (UKCI) – a MIRA-managed vehicle which forms part of the UK’s International Climate Finance – partnered with Lightsource BP to finance the construction of a 60 MWp solar farm in Wagdari, Maharashtra.

Sector                              Renewables


Sub-sector                       Solar PV


Invested                           2017 - Present


Ownership                       49%

 

Location                   Maharashtra

Powering economic development

Energy demand is on the rise in India. A larger, and increasingly prosperous, population will see India account for more than a quarter of net global primary energy demand growth through to 20403. Although much of this new energy demand is currently expected to be met through coal, the amount of energy provided by solar is expected to grow significantly3.

In 2017, UKCI announced that it had partnered with a major global solar developer – Lightsource BP – to support the build-out of green infrastructure in India.


UKCI helped facilitate Lightsource BP’s first Indian project
UKCI helped facilitate Lightsource BP’s first Indian project

Building local capability and capacity

UKCI and Lightsource BP developed a 60 MWp solar farm in the western Indian state of Maharashtra. The greenfield construction project was both UKCI’s and Lightsource BP’s first in India and represented a unique opportunity for two UK firms to share industry-leading best practices of risk mitigation and management across project development, construction and operation in the rapidly expanding market.

In less than six months, more than 200,000 ground-mounted solar photovoltaic panels were successfully installed over 240 acres of nonarable land. In addition to demonstrating the accessibility of the Indian market to international renewables developers, Lightsource BP’s and UKCI’s investment enabled the sharing of knowledge and skills – helping to build local capability and capacity in the early-stage Indian renewables market.


Tackling toxic air

In line with UKCI’s mandate to support emerging economies respond to the challenges and opportunities presented by climate change, the 60 MWp project is helping to enable cleaner growth in one of India’s most remote regions.

Connected to the local distribution grid, the solar farm is displacing electricity provided by fossil fuel-based sources of power generation – providing enough renewable electricity to meet the needs of approximately 75,000 homes each year4. In doing so, the project helps avoid over 80,000 tonnes of CO2 emissions each year as well as harmful air pollutants including nitrous oxide, sulphur oxide, PM10 and PM2.5 emissions4.

The project is making an impact in a country where more than 1.2 million people each year die prematurely as a result of air pollution5. In addition to causing serious respiratory and cardiovascular diseases amongst some of the poorest in society, it is estimated that poor air quality costs the Indian economy the equivalent of 8.5 per cent of GDP annually6.

Air pollution causes 1.2 million premature deaths each year

Supporting India's energy transition

“UK Climate Investments is proud to have worked with Lightsource BP in their first solar project in India, bringing together private sector expertise and catalytic climate finance funding to support India’s transition towards a low carbon economy.”

 

Richard Abel, Managing Director, UK Climate Investments

 

For more information about our renewables capabilities, contact us.

Our insights

Our impact across the globe

 

For more information about our renewables capabilities, please contact us.

Infrastructure


Renewables


Real Estate


Agriculture


Insurance Services


Private Credit

Infrastructure



Renewables


Real Estate


Agriculture


Insurance Services


Private Credit

All information current as at October 2019, unless otherwise stated.

 

1 2019 Draft Report on Optimal Generation Capacity Mix for 2029-30, Ministry of Power – Central Electricity Authority

2 Global Energy Perspective 2019: Reference Case, Energy Insights by McKinsey

3 BP Energy Outlook 2019: Insights from the evolving transition scenario – India, BP

4 Internal MIRA estimates

5 The impact of air pollution on deaths, disease burden, and life expectancy across the states of India: the Global Burden of Disease Study 2017, India State-Level Disease Burden Initiative Air Pollution Collaborators (Published December 2018)

6 Cost of Air Pollution: Strengthening the Economic Case for Action 2016, The World Bank and Institute for Health Metrics and Evaluation University of Washington, Seattle