Ex-Im Bank Approves $80 Million in Export Financing for Solar Project in India
April 13, 2012
(Ex-Im Bank)
Ex-Im Bank Financing Supports U.S. Jobs in Eight States
Washington, D.C. – Supporting U.S. jobs at companies in eight states, the board
of directors of the Export-Import Bank of the United States (Ex-Im Bank)
approved an $80.32 million direct loan for the purchase of concentrated solar
power technology by Reliance Power, Ltd. in Rajasthan, India. The project,
"Rajasthan Sun Technique Energy Private Limited," is a subsidiary of Reliance
Power and is being co-financed by the Asian Development Bank and FMO, the Dutch
development bank.
While accompanying President Obama on his trip to India in November, 2010, Ex-Im
Bank Chairman and President Fred P. Hochberg signed a $5 billion Memorandum of
Understanding (MOU) with Anil Ambani, Chairman of Reliance Power. The MOU
proposed the purchase of 900 megawatts of renewable energy generating equipment,
in addition to the purchase of 8,000MWs of gas-fired technology from U.S.
manufacturers and service providers over a period of five years. Since then,
Ex-Im Bank has financed $760 million in three Reliance Power renewable energy
transactions supporting 165 megawatts of solar and 2400MWs of gas.
U.S. companies potentially involved in the transaction include AREVA Solar Inc.
(Mountain View, Calif.); E.I. DuPont de Nemours and Co. (Wilmington, Del.);
Clifford Chance Rogers Wells LLP (Washington, D.C.); 3M Company (St. Paul,
Minn.); Sika Corp. (Lyndhurst, N.J.); CCI Corp. (Tulsa, Okla.); Certainteed
Corp. (Valley Forge, Pa.); Huck International Inc. (Waco, Texas); and Weed
Instrument Company Inc. (Round Rock, Texas).
"This transaction will give renewable energy U.S. exporters a larger footprint
in India, and it will help them be competitive against the German and Chinese
companies in this field," said Hochberg. "We are excited to be at the forefront
of financing this innovative technology and meeting the demands in India for
cutting-edge, American-made solar equipment."
"The Ex-Im Bank loan is an important component in helping U.S. companies like
AREVA Solar, and our subcontractors, compete for and execute solar energy
projects in a competitive global market while creating American jobs and
economic growth." said Bill Gallo, Chief Executive Officer, AREVA Solar.
"Reliance Power is proud to be a leader in India's clean energy future. This is
the second loan approval by Ex-Im in our renewable energy initiative," stated
Jayarama P. Chalasani, Chief Executive Officer of Reliance Power. "Our strategic
tie-up with Ex-Im is unmatched in terms of its scope and size. This partnership
plays an important role in meeting India's growing energy needs." Chalasani
discussed export potential for U.S. companies at the breakout session,
"Exploring Opportunities in India," today at the Ex-Im Bank 2012 Annual
Conference.
The purchase will showcase a concentrated solar power technology known as
compact linear Fresnel reflector (CLFR) from AREVA Solar Inc. CLFR technology
boils water using a series of rotating flat mirrors to concentrate sunlight onto
a central elevated system of tubes that contain water. The solar system produces
superheated steam that is collected in a piping system and transported to a
steam turbine to produce electricity. This project along with the Kogan Creek
Solar Boost Project in Australia (44 MW under construction) are the first to use
technology of this kind from AREVA Solar on a large commercial scale.
Since fiscal year 2011, Ex-Im Bank has financed seven Indian solar power
generating projects. With today's transaction the Bank's total authorizations
for these projects is $256.7 million, supporting 205 megawatts, which would
generate enough electricity to power about 250,000 homes in India. Ex-Im Bank is
one of the largest financiers of renewable energy projects in India.
The demand for solar power in India is in part due to India's national solar
initiative, the Jawaharlal Nehru National Solar Mission. The initiative's
objective is to bring 20,000 megawatts of installed solar capacity into the
nationwide grid by 2020. Seven percent of the energy installed capacity will be
renewable energy in the country. Ex-Im Bank's support was needed due to a
general lack of available long-term financing at commercially feasible terms for
solar projects in India.
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