Engie has started the construction of a 400 MW solar plant in Gujarat, India, secured through competitive bidding in a 750 MW auction by Gujarat Urja Vikas Nigam Ltd (GUVNL).
With an estimated investment of $200 million, the project has a 25-year power purchase agreement (PPA) with GUVNL, aiming to generate 907 GWh of electricity and offset 774,112 tons of carbon emissions annually.
Engie expects to commission the project by the second quarter of 2024, expanding its total renewable energy portfolio in India to 1.5 GW across 18 projects in seven states. This marks Engie’s third renewable project in Gujarat.
“The project is presently in the construction phase, with the Final Investment Decision (FID) already made,” said Engie. “This successful FID decision is a significant milestone for ENGIE and showcases our potential to accelerate the development of our renewable energy portfolio and achieve our global target of adding 4 GW of capacity per year by 2025, taking our global installed capacity to 50 GW.”
The decision to reach a financial investment decision (FID) is a pivotal step in project development, signifying the commitment of funds by a project sponsor or investor before the initiation of construction or implementation, according to Engie.
Engie plans to further expand its energy storage capabilities and provide innovative energy solutions to its customers in India.