From pv magazine India
The World Bank has approved the second round of a $1.5 billion loan to help India push its low-carbon energy development. The funds will help promote a vibrant market for green hydrogen, scale up renewable energy, and stimulate finance for low-carbon energy investments.
India, the fastest-growing large economy in the world, is expected to continue expanding rapidly. Decoupling economic growth from emissions growth requires scaling up renewable energy, especially in hard-to-abate industrial sectors. This necessitates expanding green hydrogen production and consumption and developing climate finance to boost low-carbon investments.
The World Bank’s Second Low-Carbon Energy Programmatic Development Policy Operation will support reforms to boost the production of green hydrogen and electrolyzers. It will also support reforms to increase renewable energy penetration, incentivize battery energy storage solutions, and amend the Indian Electricity Grid Code to improve renewable energy integration.
In June 2023, the World Bank approved the first $1.5 billion First Low-Carbon Energy Programmatic Development Policy Operation. This supported the waiver of transmission charges for renewable energy in green hydrogen projects, issued a clear path to launch 50 GW of renewable energy tenders annually, and created a legal framework for a national carbon credit market.
“Both the first and second operations have a strong focus on boosting private investment in green hydrogen and renewable energy,” said Auguste Tano Kouame, World Bank country director for India.
The World Bank funding is expected to result in the production of at least 450,000 metric tons of green hydrogen and 1.5 GW of electrolyzers per year from fiscal 2025-26 onwards. It will also significantly increase renewable energy capacity, support reductions in emissions by 50 million tons per year, and develop a national carbon credit market.
Popular content
“India has taken bold action to develop a domestic market for green hydrogen, underpinned by rapidly expanding renewable energy capacity. The first tenders under the National Green Hydrogen Mission’s incentive scheme have demonstrated significant private sector interest,” said Aurélien Kruse, team leader for the operation. “The operation is helping in scaling up investments in green hydrogen and in renewable energy infrastructure. This will contribute towards India’s journey for achieving its Nationally Determined Contributions targets.”
This operation is aligned with the government of India’s energy security and with the Bank’s Hydrogen for Development (H4D) Partnership.
The financing for the operation includes a $1.46 billion loan from the International Bank for Reconstruction and Development and a $31.5 million credit from the International Development Association.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.