“World Bank’s support to India in renewable energy sector increases”
Business:
The World Bank will provide India with $1.5 billion to finance the second operation to help accelerate the development of low-carbon energy.
This is the second operation that has the support of the World Bank and the approval of the Board of Executive Directors. The first tranche of $1.5 billion was approved in June last year.
This operation will help promote the development of the green hydrogen market as well as the expansion of renewable energy sources such as solar and wind.
The second Low Carbon Energy Programmatic Development Policy Operation aims to support reforms to promote the production of green hydrogen and electrolysers, a key technology required for the production of green hydrogen. This operation also supports reforms to promote the penetration of renewable energy; for example, encouraging battery energy storage solutions and amending the Indian Electricity Grid Code to improve the integration of renewable energy into the grid.
“The World Bank is pleased to continue supporting India’s low-carbon development strategy, which will help achieve the country’s net zero emissions goal while creating clean energy jobs in the private sector,” he said. “In fact, both the first and second operations have a strong focus on promoting private investment in green hydrogen and renewable energy.”
The reforms supported by the operation are expected to result in the production of at least 450,000 metric tonnes of green hydrogen and 1,500 megawatts of electrolysers per year from the next fiscal year. In addition, it will also significantly help in adding renewable energy capacity and support emission reductions of 50 million tonnes per year. The operation will also support measures to further develop the national carbon credit market.
“India has taken bold steps to develop a domestic market for green hydrogen supported by rapidly growing renewable energy capacity. The first tenders under the National Green Hydrogen Mission Incentive Scheme have seen significant interest from the private sector,” said Aurelien Cruse, Xiaodong Wang and Surabhi Goyal, team leaders of the operation.
Financing for the operation includes a $1.46 billion loan from the International Bank for Reconstruction and Development (IBRD) and a $31.5 million loan from the International Development Association (IDA).
