The European Investment Bank (EIB) has offered €200m loan to support the development of large-scale solar projects in India.
EIB has partnered with State Bank of India, a public sector undertaking bank to provide the loan.
The loan is part of a total support of €650m in five different large-scale PV solar projects, which is expected to help the country in its efforts to reduce its dependence on fossil fuel power generation.
Four schemes, with a generation capacity of 530MW, have already been identified to receive financing from EIB.
Following technical and financial due diligence, the 20-year EIB loan is expected to support projects in states such as Telangana and Tamil Nadu and other places. The lender will also support individual solar projects.
EIB also noted that its high level delegation with meet with the Indian Renewable Energy Development Agency (IRDEA) and India Infrastructure Finance (IIFL) to discuss about investing further in renewable energy investment in the country.
Since 1993, EIB has financed projects totalling €1.7bn in India.
European Investment Bank vice president Andrew McDowell said: “Large scale investment in renewable power is essential to enhance affordable, reliable and sustainable energy. The European Investment Bank is pleased to strengthen our close partnership with the State Bank of India to support world class solar energy developments that will make a significant contribution to India’s ambitious renewable energy goals.
“Unlocking new investment in large scale solar generation is crucial to ensure that renewable energy plays a leading role in India’s energy mix in the years ahead. This new project reflects the shared commitment of India and the European Union to tackle climate change and implement the Paris Climate Agreement.”
State Bank of India managing director B Sriram said: “The new cooperation between the State Bank of India and the European Investment Bank will scale up investment in large scale solar power generation across India.
“Close cooperation between technical and financial teams from both institutions will ensure that world class projects are supported.”
Image: EIB commits €200m to India to develop solar farms. Photo: Courtesy of start08/FreeDigitalPhotos.net.