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Press Release from 2023-12-20 / Group, KfW Development Bank

Approximately EUR 1 billion for the energy transition in India: KfW supports Indo-German solar energy partnership

  • An additional EUR 200 million for the expansion and conversion of the power supply to solar energy
  • Financing of photovoltaic systems
  • Reducing India’s rising greenhouse gas emissions: preventing over 650,000 tons of CO2 per year

On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), KfW has signed a loan agreement with the State Bank of India (SBI) for a loan of EUR 70 million and another agreement with the Indian Ministry of Finance for a loan of EUR 130 million. This means that KfW’s total support for the German-Indian solar partnership to expand production capacity for solar energy totals around EUR 1 billion since 2017.

The SBI is refinancing loans to investors for solar farms with a total capacity of around 180 MW with the funds committed as part of phase III. The funds issued by the Indian state to the power generation company of Maharashtra are intended to support ground-mounted solar systems in the state with a total capacity of 330 MW as well as power lines from the solar farms to the closest substation.

“KfW is helping India to expand its solar energy infrastructure with the aim of meeting the country’s rapidly-increasing demand through renewable energies as much as possible. The demand for energy and electricity is increasing due to economic and population growth, urbanisation, industrialisation and electrification. We wish to support India – as the third largest producer and second largest consumer of electrical energy in the world – in contributing to a broadly effective, technically and economically efficient, and socially and environmentally sustainable energy supply,”

states Christiane Laibach, Member of the Executive Board of KfW Group.

The projects implemented as part of the two new contracts will reduce India’s rising greenhouse gas emissions by 650,000 tons per year.

Two loans of EUR 150 million each have already been granted to SBI under the “German-Indian Solar Partnership I”. In total, ten contracts amounting to around EUR 1 billion have been concluded with various financial institutions and the Indian state.

The impact of all the measures financed by KfW as part of the German-Indian solar partnership is enormous: 4 GW of output has been installed and 5 million people are now supplied with electricity from renewable energies. This saves around 6 million tons of CO2 emissions per year across India.

Further information about KfW Development Bank is available at: KfW Development Bank

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