NEW DELHI: The
World Bank
's Board has approved $1.5 billion loans to help India accelerate the development of low-carbon energy. The operation will seek to promote the development of a vibrant market for
green hydrogen
, continue to scale up
renewable energy
, and stimulate finance for
low-carbon energy
investments, according to the multilateral agency.
The programme will support reforms to boost the production of green hydrogen and electrolyzers.
It also supports reforms to boost renewable energy penetration, for instance, by incentivising battery energy storage solutions and amending the Indian Electricity Grid Code to improve renewable energy integration into the grid. The financing includes a $1.46 billion loan from International Bank for Reconstruction and Development (IBRD) and a $31.5 million credit from International Development Association (IDA).
"The World Bank is pleased to continue supporting India's low-carbon development strategy which will help achieve the country's net-zero target while creating clean energy jobs in the private sector," said Auguste Tano Kouame, World Bank Country Director for India.
The reforms are expected to result in the production of at least 450,000 metric tonne of green hydrogen and 1,500 MW of electrolyzers per year from FY25/26 onwards. It will also help to increase renewable energy capacity and support reductions in emissions by 50 million tonne per year.
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