New Development Bank to give India $250 million loan for renewables

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Good news keeps coming for renewable energy in India, and today the source was a series of Tweets from India’s Secretary for Economic Affairs, Shaktikanta Das, who confirmed the large loan from the New Development Bank. It’s part of an ambitious strategy from Indian Prime Minister Narendra Modi to increase the country’s solar capacity to 100 GW by 2022.

After participating in meetings with the U.S. Treasury Secretary, BRICS (Brazil, Russia, India, China and South Africa) finance ministers and the Board of Governors from the New Development Bank, the Secretary for Economic Affairs tweeted; “Major policy issues discussed. New Development Bank sanctioned 4 loans including a loan of US$250 million for a renewable energy scheme in India. Good beginning.”

The New Development Bank was set up by the BRICS nations in 2015 to fund various infrastructure projects in emerging economies, with the aim of promoting sustainable development. As the bank is targeting sustainable development, priority is given to renewable energy projects in the emerging economies.

The loan that has been sanctioned for India is the first of its kind, and it is to be used for solar energy projects, according to officials. It comes just a few months after the Asian Development Bank announced that it had agree to give Indian Renewable Energy Development Agency’s a $200 million loan, as part of a larger $500 million multitranche financing facility (MFF) for IREDA’s Clean Energy Finance Investment Program.

The sky’s the limit for solar in India

Indian Prime Minister Narendra Modi outlined his strong commitments towards a clean energy economy in India, and solar PV is the energy resource that he wants the country to focus most heavily on. He has given India an ambitious goal of 100 GW of solar capacity to reach by 2022.

To help the country reach this target, there has been a significant improvement in the tariff competitiveness of solar PV within the country. This had led to a surge in the development of large-scale solar PV projects within the country.

The forecasted growth for solar PV in India for the 2016-2017 fiscal year was highlighted by the Indian investment service, ICRA, last week. “Going by the project awards and tenders floated as on date, about 5.7 GW of capacity addition is expected to happen in the current fiscal year,” said Sabyasachi Majumdar, senior vice president of ICRA.