India secures $1 bn World Bank funding for solar projects

India secures $1 bn World Bank funding for solar projects

India’s solar energy programme got a huge boost on Thursday with a $ 1 billion (about Rs 6,750 crore) commitment from the World Bank.

According to the pact signed between Power Minister the multilateral funding agency will provide more than $1 billion to support India’s ambitious solar initiatives through investments in generation. The combined investments for India would be the Bank’s largest financing of solar for any country till date.

India aims to reduce its dependence on conventional energy sources to reduce greenhouse gas emissions. India has a target to generate 1 lakh MW power through solar energy by 2022.

“We have discussed renewable energy, especially rooftop solar projects. We discussed innovative financing models by which we can boost renewable energy sector,” Goyal said after the signing of the pact.

India is the largest client of the World Bank Group which lent around $4.8 billion between 2015 and 2016.

The World Bank-supported projects in the works include solar rooftop technology, infrastructure for solar parks, bringing innovative solar and hybrid technologies to market, and transmission lines for solar-rich states.

A pact for the $625 million Grid Connected Rooftop Solar Programme, which will finance at least 400 mw of solar photovoltaic (PV) installations was also signed.

“The development of a $200 million Shared Infrastructure for Solar Parks Project under a public-private partnership model is also under preparation,” the World Bank said.

The Bank also signed an agreement with the International Solar Alliance (ISA), consisting of 121 countries led by India, to collaborate on increasing solar energy use around the world, with the goal of mobilising $1 trillion in investments by 2030.

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The ISA was launched at the UN Climate Change Conference in Paris on November last year by Prime Minister Narendra Modi and French President Francois Hollande.

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