Indian Renewables Sector to Receive $100m of Funding
The World Bank is to provide $100 million of funding for renewable projects in India’s burgeoning market. $98 million of debt will be sent to the Indian Renewable Energy Development Agency (IREDA) which will then on-lend the funds to Indian states for solar projects. An additional $2 million will come by way of grants.
IREDA has earmarked 750MW and 250MW solar parks in the Madhya Pradesh region, as it looks to move towards India’s national renewable energy target of 175GW of output by 2022.
The renewable market is seen as one of the most promising on the planet. “A combination of India’s ambitious energy policy and ongoing solar and wind energy tariff deflation will enable India to catalyse US$200-US$300bn of investment in renewable energy infrastructure over the coming decade,” says Tim Buckley, director of energy finance studies at the Institute for Energy Economics and Financial Analysis.
“Improvements in energy efficiency and reduction in technical and commercial losses will deliver better electricity production per coal tonnage. To conclude, the transformation will ensure India to support its economic growth while keeping greenhouse gas emissions in check.”