Indian power transmission company Power Grid Corporation of India has invited bids for an $8bn renewable grid upgrade project in India, which will increase its grid to handle more than double the amount of renewable power capacity by 2022.
Bloomberg quoted KfW deputy director Andreas Thermann as saying that the project, backed by Germany’s development bank, involves grid upgrade work in Rajasthan and Tamil Nadu states.
KfW will initially provide a loan of $334m for the project, which is part of the Indian Government’s efforts to supply around-the-clock electricity to every Indian home.
Grid operators face wind and solar farms challenges, with the power generation intermittent and less predictable than output from coal or natural gas-fired plants.
According to Power Grid, the Green Energy Corridor programme aims to boost transmission infrastructure in eight states, in order to absorb more clean power.
KfW is expected to raise its financing to as much as €1bn, Thermann said.
Currently, India has approximately 32GW of renewable capacity, which could rise to 72GW by 2022, according to the Ministry of New and Renewable Energy.
Power Grid Corp of India is the central transmission utility (CTU) under the Ministry of Power.
The company develops robust, integrated national grids to support the growth of the Indian power sector.