Team Blitz India
NEW DELHI: The World Bank has approved a $1.5-billion loan to help India accelerate its low-carbon energy development.
The funds will be used to promote a market for green hydrogen, electrolysers, and increased renewable energy penetration, it said in a statement on June 29.
This is the second round of funding from the World Bank towards India’s green energy push.
In June 2023, the World Bank approved the $1.5-billion First Low-Carbon Energy Programmatic Development Policy Operation to accelerate India’s development of low-carbon energy.The fresh funding will help India expand green hydrogen production and consumption as well as for a faster development of climate finance. This will boost the mobilisation of finance for low-carbon investments, according to the multilateral financing agency.
“The Second Low-Carbon Energy Programmatic Development Policy Operation – the second in a series of two operations similar in size – will support reforms to boost the production of green hydrogen and electrolysers, critical technology needed for green hydrogen production,” the World Bank said in a statement.
The development comes in the backdrop of India’s ambitious energy transition targets. The Centre has set a target of achieving 500 GW of installed renewable energy capacity by 2030 and reaching net zero by 2070. Further, the Centre also launched the Rs17,000-crore National Green Hydrogen Mission to promote manufacturing of electrolysers and green hydrogen.
“The operation also supports reforms to boost renewable energy penetration. For instance, by incentivising battery energy storage solutions and amending the Indian Electricity Grid Code to improve renewable energy integration into the grid,” the World Bank said.
