Bank is investing more than $900 million into India’s renewable energy market
The European Investment Bank has announced that it will be providing more than $900 million to India’s renewable energy space. The bank is also partnering with the Indian Renewable Energy Development Agency and the India Infrastructure Finance Company. Through this partnership, the bank will help deploy new affordable solar energy systems. The funding will help provide more momentum to India’s growing clean energy space, which has been growing in recent years due to government support.
Funding will help support small-scale projects throughout the country
The funding represents one of the largest renewable energy investments that the European Investment Bank has made in Asia. Much of the funding is expected to be used to support small-scale projects. These projects have become quite popular throughout India as they are easier to develop and bring online. Some larger projects may receive support, especially if they can provide efficient electricity to communities that need it most. The European Investment Bank is also currently negotiating a new credit line with India’s Yes Bank, which will provide additional funding options for renewable energy projects.
Global cooperation is needed to tackle climate change
According to European Investment Bank vice president Andrew McDowell, global cooperation is becoming more important in the fight against climate change. The bank is promoting cooperation between several organizations. Such cooperation could help the renewable energy market thrive. Several countries are also working together to mitigate the impact of climate change by reducing emissions. Such cooperation has born the Paris Agreement, which has brought hundreds of countries together in order to address the issue of climate change.
India faces some challenges concerning its efforts with clean power
India currently has ambitious plans concerning renewable energy. The country plans to have some 100 gigawatts of installed solar capacity in place by 2020. The country’s wind energy capacity is facing some challenges, however. Several state-owned energy distributors are beginning to cancel power purchase agreements, which is creating doubt for India’s renewable energy capacity. Financial backing from the European Investment Bank could help secure India’s clean energy future, however.