The World Bank Group has signed an agreement with International Solar Alliance (ISA) to finance more than $1bn in support expansions of solar generation capacity.
The projects supported by World Bank include infrastructure for solar parks, rooftop technology, marketing of the latest hybrid technologies, and deploying transmission lines for solar-rich states.
In keeping with its commitment, the World Bank signed an agreement with the Indian Government for the $625m Grid Connected Rooftop Solar Programme.
Under the terms of the deal, the World Bank will finance the deployment of at least 400MW of solar Photovoltaic (PV) installations, which would supply clean and renewable energy and reduce greenhouse gas emissions by replacing thermal power generation.
The building of a $200m shared infrastructure for Solar Parks Project under a public-private partnership model is also under preparation.
World Bank’s president Jim Yong Kim said: "India’s plans to virtually triple the share of renewable energy by 2030 will both transform the country’s energy supply and have far-reaching global implications in the fight against climate change.
"Prime Minister Modi’s personal commitment toward renewable energy is the driving force behind these investments. The World Bank Group will do all it can to help India meet its ambitious targets, especially around scaling up solar energy."
As part of the deal, the bank will develop a roadmap to mobilise financing for the construction and installation of affordable solar energy.
A combination of investments to be made on such projects in India would be World Bank’s largest financing on solar power for any country in the world to date.