The World Bank plans to invest $775 million in clean-energy projects across India, as the new government’s plans to give fiscal and policy support to the sector are expected to galvanise further investment in renewable energy.
The economic plan of Inidia’s new Prime Minister Narendra Modi following his recent landslide election victory includes an emphasis on renewable energy which follows on from his success in implementing widespread use of solar power in his home state.
“The support shown by the new government towards clean energy is quite encouraging and is expected to give the much-needed push to the sector and unlock pending investments,” said Ashish Khanna, lead energy specialist at the World Bank.
“The World Bank is ready to partner with the government in scaling up sustainable clean energy investments.”
India’s Minister for Power, Coal and Renewable Energy Piyush Goyal recently said that the potential and scope of renewable sources were a part of the government’s vision for ensuring energy security.
Narendra Taneja, national convener of the BJP’s energy group, told Indian media earlier that the ruling party “strongly believes that renewable energy will play a pivotal role in bringing power to every household in the country”.
India’s clean-energy sector has attracted the interest of international investors.
In the past week, companies such as Welspun Energy and Renew Power have secured investments from General Electric, the Asian Development Bank and Goldman Sachs.
Gevorg Sargsyan, program manager for climate investment fund at the bank, said it had approved two projects for investment, a $100 million Himachal Pradesh development policy loan and the $200 million Rajasthan renewable energy transmission investment program implemented by the Asian Development Bank.
According to the World Bank, the climate investment fund provides middle-income countries with highly concessional resources to explore options to scale up the demonstration, deployment and transfer of low-carbon technologies in renewable energy, energy efficiency as well as sustainable transport.
India has substantially increased its share of clean-energy projects, said Mr Khanna.
However, in order to achieve the targets of its own national solar mission, the government must provide long-term clarity in policy, regulations and financial support mechanisms and encourage sustained commercial lending from financial institutions, he added.
