Oyster Renewable Energy subsidiary, Oyster Green Hybrid Three, has reached financial closure for its 342 MW solar-wind hybrid power project in Madhya Pradesh, securing an INR 1,844 crore project loan from Union Bank of India. The loan represents one of the largest debt financings for a hybrid renewable project in the state, with a tenure of around 20 years.

Project Structure and Grid Connection

The co-located solar and wind project will be connected to the Inter-State Transmission System (ISTS) grid, ensuring reliable and efficient power evacuation. This hybrid configuration combines both solar and wind generation technologies at the same location in Madhya Pradesh. Oyster has signed a 25-year Power Purchase Agreement (PPA) under captive power norms with a leading process industry unit. This long-term agreement provides revenue certainty for the project over its operational lifespan.

Environmental Impact

The project is expected to displace nearly 8 lakh tons of CO₂ emissions annually, contributing significantly to India's decarbonization targets. This substantial reduction in carbon emissions represents one of the key environmental benefits of the hybrid renewable energy project. Union Bank of India's backing supports one of the state's largest hybrid renewable projects, demonstrating the financial sector's confidence in large-scale renewable energy infrastructure.

Management Commentary

Siddharth Bhatia, Managing Director of Oyster Renewable Energy, described the financial closure as “a defining milestone in Oyster Renewable's journey.” He emphasized that the project demonstrates “the future of round-the-clock energy in India, reliable green power that fuels industrial growth while advancing national climate goals.” Bhatia added that the backing from Union Bank of India highlights confidence in execution strength and the bankability of hybrid renewable solutions.

The management views this financing as validation of their project development capabilities and the commercial viability of hybrid renewable energy projects.

Project Significance

The 342 MW capacity represents a substantial addition to Madhya Pradesh's renewable energy portfolio. The hybrid nature of the project, which combines solar and wind technologies, enables more consistent power generation compared to single-technology renewable projects. The financial closure marks the completion of the project's funding arrangements, enabling construction and development activities to proceed.

The 20-year loan tenure aligns with the long-term nature of renewable energy projects and their revenue streams. The project's connection to the ISTS grid ensures that the generated power can be transmitted across state boundaries, providing flexibility in power distribution and market access. This grid connection is crucial for large-scale renewable projects seeking to serve multiple markets and customers.

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