World Bank approves $1.5 billion for green energy in India
Notable because
The Central Electricity Authority expects India’s energy needs to grow 1.7 times by 2030, from 2022 levels. To strike a balance between its energy security and decarbonisation objectives, India needs substantial deployment of low-emissions technologies. If effectively deployed as blended finance, this amount of USD 1.5 billion can aid in scaling up such technologies, as it is estimated that setting up 450 GW of RE generation capacity would require USD 200 billion.
What to look out for in the months ahead
This investment aims to address viability funding gaps and off-taker risks and boost grid integration. Considering that solar and wind technologies are commercially viable, will it focus on financially underserved technologies such as offshore wind and storage? Will the investment be able to suitably de-risk and stimulate private capital flows to such emerging technologies?