International Finance Corporation (IFC) has committed $105 million (₹870 crore) to Brookfield Asset Management’s solar project at Bikaner, Rajasthan.

The private financing arm of the World Bank group said it will part finance the 550 MWp (megawatt peak) solar power project.

The investment will be done through long-term non-convertible debentures allocated to the project's special purpose vehicles.

IFC said Brookfield will provide solar power to commercial and industrial (C&I) consumers across India at more competitive tariffs through long-term power purchase agreements (PPAs).

This is IFC's first investment in Asia and the Pacific using an innovative hybrid offtake structure where the project sells the power generated to C&I consumers under long-term corporate PPAs and merchant market.

It said the project will be connected to the inter-state transmission system section of India's green energy corridor.

According to IFC, India is in the midst of a green transition in the energy sector, having pledged to increase its non-fossil fuel capacity to 500GW by 2030.

The country's renewable energy sector has already attracted about $10 billion in annual investments between 2017 and 2022 and is expected to generate annual investments of $25 billion through 2030. Of this, around 20 per cent is estimated to be directed towards the C&I and merchant market.

"Through our partnership with Brookfield, IFC aims to facilitate the broader uptake of clean energy by demonstrating the viability of large-scale renewable energy generation, and sale to pan-India corporate and industrial clients, through the interstate transmission system," IFC's regional director for South Asia Imad N. Fakhoury said.