World Bank Inks Project to Scale up Renewable Energy Technologies in India
- The World Bank, with the project, offers to India $150 million IBRD loan, a $28 million Clean Technology Fund (CTF) loan and a $22 million CTF grant.
- The project will certainly support SECI with human resource as well as company planning, project monitoring, procurement, economic and also contract management, environmental and also social safeguards as well as economic management, among others.
The World Bank has actually revealed that it has signed agreements with the Government of India (GoI) and also Solar Energy Corporation of India Limited (SECI) for a $150 million IBRD loan, a $28 million Clean Technology Fund (CTF) loan and a $22 million CTF grant.
The objective of the economic agreements is to aid India enhance its power generation capacity through cleaner, renewable energy sources. World Bank said that the agreement emphasizes the Government of India's commitment to achieve 500 GW of renewable energy by 2030 in order to resolve the difficulties of climate adjustment.
The $150 million loan from the International Bank for Reconstruction and Development (IBRD), has a 5-year grace period, as well as a maturity of 25 years. The $28 million loan from the Clean Technology Fund (CTF) has a 10-year grace period, and also a maturation of 40 years. The $22 million is an interest-free CTF grant.
"India's transition to sustainable resources of energy is just one of the most critical transitions for its future," stated Hideki Mori, Operations Manager & Acting Country Director, India, World Bank.
The Project intends to address constraints in commercial investments in this sector via boosting the confidence of the different stakeholders. The Project will likewise aid SECI rise market uptake by dealing with the barriers to deploying new technologies at scale.
The initial solar sub-project is being built by Battery Energy Solar Systems (BESS) in Rajnandgaon district of Chhattisgarh. The second subproject which will have floating solar panels is ongoing at the Getalsud reservoir in Jharkhand.
India presently has actually a set up capacity of more than 409 GW, of which the renewable energy (non-hydro) share is nearly 29 percent (119.5 GW). World Bank opines that the project will certainly speed up India's development towards lasting universal power gain access to, which is an essential milestone for accomplishing comprehensive economic development objectives.
World Bank also preserved that strengthening SECI's capacity is critical to attaining India's mounted RE capacity by 2030 as well as net zero emission target by 2070. The project will support SECI with human resource and business planning, project monitoring, procurement, financial and also contract management, ecological and also social safeguards and also monetary management, to name a few.
"This interaction attempts to present nascent technologies in the renewable energy sector at a reasonably bigger scale. The subprojects financed under this Project aim to displace fossil-fuel based generation by positioning renewable energy to fulfill peak power demand, establish ecosystem to attract private sector investments, as well as assistance institutional fortifying," said Surbhi Goyal, Senior Energy Specialist and Task Team Leader for the project, World Bank.