The funding provided by the European Union’s long-term lending institution will back up a total investment of €650 million ($693 million) in five large-scale solar power projects across India.
According to the EIB, four schemes across the country with a generation capacity of 530 MW have already been identified.
This constitutes yet another stride towards the country’s ambitious clean energy targets, including the recently doubled solar park capacity from 20 GW to 40 GW by 2020.
The projects that are to be supported by this financing package are penciled in for completion by 2020 under the Jawaharlal Nehru National Solar Mission (JNNSM).
“Unlocking new investment in large scale solar generation is crucial to ensure that renewable energy plays a leading role in India’s energy mix in the years ahead,” said Andrew McDowell, EIB Vice President. “This new project reflects the shared commitment of India and the European Union to tackle climate change and implement the Paris Climate Agreement.”
The 20-year loan agreement was inked at the inauguration of the EIB regional office for South Asia located in New Delhi, which will be oriented towards transformational investment so as to help India achieve its objectives of sustainability and climate change mitigation.
With almost non-existent capacity in 2013, India is now one of the hotspots on the world’s solar map with 4 GW of PV installed in 2016 and over 9 GW forecasted for 2017.
Renowned for delivering robust policies that support clean energy access, India’s cumulative solar capacity has now risen beyond 10 GW as the country is eyeing its long-term target of 100 GW of solar PV by 2022.