Projects

World Bank Signs Project to Scale up Innovative Renewable Energy Technologies in India

The Government of India, Solar Energy Corporation of India Limited (SECI), and the World Bank has signed agreements for a $150 million IBRD loan, a $28 million Clean Technology Fund (CTF) loan and a $22 million CTF grant to help India increase its power generation capacity through cleaner, renewable energy sources. The agreement underscores the Government of India’s commitment to achieve 500 gigawatts (GW) of renewable energy by 2030 to address the challenges of climate change.

“India’s transition to renewable sources of energy is one of the most critical transitions for its future. The World Bank is committed to supporting India during this transition. This project will bring in international experience in deploying new technologies to the sector and support India’s progress in adopting cleaner, renewable energy fuels.”

The Project aims to address constraints in commercial investments in this sector through increasing the confidence of the various stakeholders. The Project will also help SECI increase market uptake by addressing the barriers to deploying new technologies at scale.

India currently has an installed capacity of more than 409 GW, of which the renewable energy (non-hydro) share is almost 29 percent (119.5 GW). The project will accelerate India’s progress towards sustainable universal electricity access, which is a key milestone for achieving inclusive economic development objectives.

Strengthening SECI’s capacity is critical to achieving India’s installed RE capacity by 2030 and net zero emission target by 2070. The project will support SECI with human resource and business planning, project monitoring, procurement, financial and contract management, environmental and social safeguards and financial management, among others.

The $150 million loan from the International Bank for Reconstruction and Development (IBRD), has a 5-year grace period, and a maturity of 25 years. The $28 million loan from the Clean Technology Fund (CTF) has a 10-year grace period, and a maturity of 40 years. The $22 million is an interest-free CTF grant.