On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), KfW signed a loan agreement for €200 million with the Indian Renewable Energy Development Agency Ltd. (IREDA) on 16 December. 

• Credit line in the amount of €200 million was signed between KfW and IREDA on 16 December 2019
• Increased generation of electricity from solar and wind sources to provide clean electricity for an estimated 460,000 people
• Improved quality and sustainability of power plants

IREDA is distributing funds in the form of low-interest loans to investors for developing solar and wind power plants, possibly for innovative technologies such as floating solar, wind-solar hybrid power plants, and storage systems. Borrowers are in turn providing a counterpart contribution of as much as 30%, bringing the total investment to approx. €285 million. It is expected that through this loan at least 600,000 tonnes of CO2 savings will be achieved per year and that the newly installed plants will produce sufficient energy to supply an estimated number of 460,000 people with climate-friendly electricity.

Support will also be provided to IREDA for strengthening its Environmental and Social Management System and for ensuring that high-quality standards are applied in the newly installed power plants. Furthermore, the loan will support IREDA in broadening its technology range in the financing of renewable energies, especially with regard to innovative approaches such as storage solutions, wind-solar hybrid power plants, or solar/PV applications in connection with charging infrastructure for e-mobility. The new credit line is yet another important component for implementing the “Indo-German Solar Energy Partnership”, as agreed upon by the two governments in 2015. It supports India’s target of installing 175 GW of renewable energy capacity by 2022. 

“India ranks third in the list of countries with the highest CO2 emissions. In light of the high growth in the economy and population, demand for electricity will also continue to rise along with emissions harmful to the climate. This additional KfW financing to promote electricity generated from solar and wind power plants will make an important contribution to slowing the rise in greenhouse gas emissions and reducing the deficit in the power supply,” says Prof. Joachim Nagel, Member of the KfW Group Executive Board.