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More progress in implementing the Paris Agreement: KfW finances solar energy production in India
Frankfurt am Main (ots) -
- Solar energy partnership: First agreement for EUR 150 million with the State Bank of India (SBI) - Continued development of financing market for solar power plants - Improvement in power supply for the people of India
On behalf of the Federal Ministry for Economic Cooperation and Development (BMZ), KfW has signed an agreement with the State Bank of India for EUR 150 million. The goal of this first of two planned lines of credit is the expansion and conversion of India's power supply towards more renewable energy sources by refinancing sub-loans to install solar power systems. The two lines of credit will make it possible to invest up to EUR 400 million in solar power systems. This, in turn, can supply at least 400 MW of power. The total output of all photovoltaic plants erected in India to date is around 15 GW. By 2022, 100 GW of India's power production capacity is set to come from photovoltaic plants.
"The solar energy partnership between Germany and India makes an important contribution to the protection of the global environment and presents a new step in the implementation of the Paris Agreement. After China and the USA, India is the third largest energy consumer and greenhouse gas emitter in the world. By using more renewable energy, the continued increase in greenhouse gas emissions from India can be slowed and the provision of power to the Indian population can be significantly improved," stated Professor Joachim Nagel, member of the Executive Board of KfW Group.
The line of credit is an additional step on the path to achieving India's solar construction goals, which would not be possible without the involvement of the financial and private sectors.
The memorandum on the Indo-German Solar Energy Partnership was signed in October 2015. It provided for commitments of a total of one billion euros over a period of five years. From this total, EUR 550 million have been pledged so far.
More information on KfW Development Bank is available at: http://ots.de/ruM3M.