In a significant multilateral financing development, the Asian Development Bank (ADB) has signed a $331 million financing agreement with ReNew Vyoman Power Private Limited for an 837 MW wind-solar power plant with a 415 MWh battery energy storage system (BESS) facility in Andhra Pradesh, delivering 300 MW of round-the-clock (RTC) renewable energy in the state. This marks ADB’s first time financing of an RTC project in India, one that combines wind, solar and battery storage, to deliver firm power to the grid. With growing concerns over intermittency and the rising demand for flexible, grid-supporting power, this project stands as a blueprint for the future of renewable energy in India.
Deal details
This deal highlights the growing role of blended finance in enabling energy innovation at scale. The deal is backed by ADB’s financing and is co-funded by Japan’s Leading Asia’s Private Infrastructure Fund 2 (LEAP 2). The LEAP 2 facility is a critical co-financing vehicle aimed at scaling private sector infrastructure in Asia. It was launched in 2016 and was further expanded in December 2023 with a $1.5 billion allocation. As of 2023, LEAP committed over $1 billion in co-financing across 35 projects in 14 of ADB’s developing member countries.
By channelling LEAP 2 funding into the ReNew project, ADB is helping bridge the financing gap that often constrains the early adoption of battery storage and hybrid systems. The use of concessional funding lowers the overall cost of capital, improves project bankability and helps crowd in private sector capital for climate-resilient infrastructure. The $331 million debt from ADB comprises up to $291 million in local currency financing from ADB’s ordinary capital resources and up to $40 million from the ADB-administered LEAP 2 fund, with ADB mobilising the remainder as the mandated lead arranger. The project will be developed in Andhra Pradesh, a state that has emerged as a key renewable energy zone with established transmission corridors and favourable policy support for hybrid and RTC projects.
Outlook
Until now, India’s clean energy growth has been characterised by large-scale additions of solar and wind capacity. With this project, ReNew has taken another decisive step towards firm, despatchable renewable electricity, capable of replacing fossil-based generation for peak and baseload needs.
As ReNew chairman and CEO Sumant Sinha stated, “India is entering a new phase in clean energy transition, defined not only by scale, but also by reliability and flexibility. This project demonstrates that renewable energy can be delivered round the clock, competitively and at grid scale. Our long-standing collaboration with ADB has enabled us to continually push the boundaries of what is possible in clean energy infrastructure.”
However, developers and financiers must navigate execution and operational challenges such as battery degradation, upfront capex and grid constraints. Nevertheless, as battery costs decline and digital optimisation improves, hybrid RTC projects are expected to increase. The success of this project could be instrumental in bringing a new wave of clean infrastructure investments across India and other ADB member countries.
Bhargav Dasgupta, ADB vice president for market solutions, called the project a milestone in clean power delivery: “This is the first RTC peak renewable energy project to be financed by ADB. The integration of BESS with wind-solar hybrid systems ensures firm and reliable clean power, improves grid stability and supports India’s transition to a sustainable energy future.”
With concessional funds supporting early projects and risk-sharing mechanisms in place, India can emerge as a global testing ground for firm, renewable energy systems. In India, states such as Gujarat, Rajasthan, Andhra Pradesh and Tamil Nadu have robust solar/wind profiles, and are already exploring hybrid zones and storage-linked contracts. The central government’s ongoing efforts to expand transmission (via Green Energy Corridor III and the planned battery storage road map) will further improve the ecosystem for scaling such models.
Conclusion
As part of ReNew’s broader 2.8 GW initiative in Andhra Pradesh, the project demonstrates the technical and commercial feasibility of delivering firm, despatchable renewable power through an optimised combination of solar, wind and battery storage technologies. Anchored in the principles of the Make in India programme, the project prioritises local value addition through the use of domestically manufactured solar modules and advanced tracking systems. As more such hybrid RTC models emerge across the country, supported by multilateral institutions and private developers, this project is likely to serve as a blueprint for future clean energy deployments not just in India, but also across the developing world.