Rs.1 Billion Boost for India’s Solar Sun – EQ
In Short : India’s solar sector receives a significant boost with a Rs. 1 billion investment, signaling a substantial commitment to furthering the country’s solar energy initiatives. This financial infusion is poised to accelerate the growth and development of solar projects in the region.
In Detail : Germany has further solidified its commitment to supporting India’s transition to renewable energy with a fresh ?200 million loan package. This latest financial injection brings KfW, the German development bank, total support for the German-Indian solar partnership to a staggering 1 billion since 2017.
The loan agreement, signed on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), comprises two parts:
70 million loan to the State Bank of India (SBI): This will be used to refinance loans to investors for solar farms with a total capacity of around 180 MW.
130 million loan to the Indian Ministry of Finance: This will support the development of ground-mounted solar systems in the state of Maharashtra, with a total capacity of 330 MW, along with connecting power lines to the nearest substation.
“KfW is helping India to expand its solar energy infrastructure with the aim of meeting the country’s rapidly-increasing demand through renewable energies as much as possible,” stated Christiane Laibach, Member of the Executive Board of KfW Group. “We wish to support India in contributing to a broadly effective, technically and economically efficient, and socially and environmentally sustainable energy supply.”
The environmental benefits of this partnership are significant. The projects financed by the two new loans are expected to reduce India’s greenhouse gas emissions by an impressive 650,000 tons per year.
This isn’t the first time KfW has extended a helping hand to India’s solar ambitions. Under the “German-Indian Solar Partnership I,” two loans of ?150 million each were previously granted to SBI. In total, ten contracts amounting to around ?1 billion have been concluded with various financial institutions and the Indian state.
The impact of KfW’s involvement in India’s solar journey is undeniable. A remarkable 4 GW of solar power output has been installed, providing electricity from renewable sources to 5 million people. This translates to a staggering 6 million tons of CO2 emissions saved annually across India.
Germany’s unwavering support for India’s solar energy expansion exemplifies a positive and impactful international collaboration in the fight against climate change. As India strives to meet its ambitious renewable energy targets, KfW’s continued partnership promises to illuminate the path forward with a brighter, cleaner future.
