The European Investment Bank (EIB) has agreed to provide an €800m loan to promote investment in India’s renewable energy market.
To be used to support small-scale renewable energy (RE) projects across India, this funding will be one of the bank’s largest energy investments in Asia.
The EIB has also partnered with the Indian Renewable Energy Development Agency (IREDA) and India Infrastructure Finance Company to help develop and deploy affordable solar energy.
In addition, the EIB is negotiating a new €200m credit line with Yes Bank to provide additional financing for RE projects. Due to be finalised in the upcoming months, the credit line is expected to include one of the highest number of solar energy projects among the RE mix.
EIB vice-president Andrew McDowell said: “Global cooperation is essential to tackle climate change and closer cooperation between the International Solar Alliance and the EIB will mobilise international climate finance and improve sharing of technical experience.
“This new agreement reflects our shared commitment to successful implementation of the Paris Climate Agreement and ensuring that solar rich economies can harness solarpower to increase the supply of affordable clean energy.”
In the last five years, the EIB has provided more than €21bn for renewable energy investment, which includes €2.5bn in photovoltaic (PV) and concentrated solarpower projects worldwide.