SAEL Secures $1 Billion Funding for Renewable Energy Expansion

SAEL has outlined a capital expenditure goal of ₹150 billion (~$1.8 billion) in FY 25


SAEL, an India-based solar and agricultural waste-to-energy company, raised $1 billion in a funding round involving Norfund, the U.S. Development Finance Corporation, the Asian Development Bank (ADB), Tata Cleantech, and other financial institutions.

Out of the total, ADB approved a ₹12.23 billion ($147 million) loan for a 400 MW solar project in Gujarat, and Tata Capital provided financing of ₹6.11 billion ($73.4 million).

ADB led the financial structuring and mobilized domestic private capital

The company said the investment will be used to expand its solar and biomass projects, taking advantage of the favorable market conditions and government programs in the renewable energy sector.

SAEL is set to construct and manage a solar power project in the Khavda Ultra Mega Solar Park, Gujarat, India. The electricity generated will be provided to Gujarat Urja Vikas Nigam (GUVNL) under a 25-year purchase agreement.

The plant is expected to generate an average of 953 GWh of clean energy annually, preventing approximately 783,855 tons of carbon dioxide emissions each year.

SAEL has planned an expansion with a capital expenditure goal of ₹150 billion (~$1.8 billion) in FY25. The company aims to execute 2-2.5 GW of renewable capacity every year to reach a target of 10 GW in the next four years.

The company has a portfolio of 2.7 GW.

Jasbir Singh, Chairman and Managing Director of SAEL, said the support of investors reflected the company’s commitment to advancing renewable energy initiatives.

He reiterated SAEL’s focus on solar and waste-to-energy projects.

Norfund’s CEO, Tellef Thorleifsson, said the funding was in line with the mandate Norfund has for the management of the Norwegian Climate Investment Fund.

Deputy Chief of the U.S. Mission in India, Patricia Lacina, highlighted the collaborative vision between her country and India to deploy clean energy at scale, expressing confidence that DFC’s investment in SAEL would contribute to increased renewable energy capacity, reduced particulate matter, and support for enhanced farmer incomes.

In March 2023, SAEL signed loan agreements with the Asian Development Bank for up to ₹7.5 billion (~$91.16 million) to promote biomass energy generation using agricultural residue. The funding will support the construction of five 14.9 MW biomass power projects in the Bikaner, Churu, Hanumangarh, Jhunjhunu, and Sikar districts of Rajasthan.

In April, The company raised ₹13.25 Billion (~$159.38 million) via the sale of rupee bonds, which will mature in 2033.

Earlier, SAEL won Solar Energy Corporation of India’s auction to set up 2 GW of interstate transmission system solar projects (Tranche XI), bagging a capacity of 600 MW for a quoted price of ₹2.60 (~$0.032)/kWh.