EIB to back global solar, lend EUR 800m for renewables in India

The European Investment Bank (EIB) on Friday announced a partnership with the International Solar Alliance (ISA) and committed to provide EUR 800 million (USD 938.5m) for renewables in India.

As part of the agreement, unveiled at the 14th India – European Union summit held in New Delhi, the EIB and ISA will seek to mobilize finance for the deployment of “affordable solar energy” in sunshine rich countries members of ISA. “This new agreement reflects our shared commitment to successful implementation of the Paris Climate Agreement and ensuring that solar rich economies can harness solar power to increase the supply of affordable clean energy.” said Andrew McDowell, EIB’s vice president.

The ISA is a global organization with 121 member countries and financial institutions. Headquartered in India, its primary goal is to facilitate work for the efficient exploitation of solar power to help lower dependence on fossil fuels.

For India, in particular, the EIB said it has already signed or approved EUR 800 million for small-scale renewable energy projects in 2017. The investment includes financing provided together with the Indian Renewable Energy Development Agency (IREDA) and the India Infrastructure Finance Company. A credit facility of EUR 200 million, which is currently being finalized in partnership with Indian lender Yes Bank Ltd (BOM:532648), is also part of the programme and will mostly target solar schemes.

The EIB noted it has provided over EUR 21 billion for renewables globally over the past five years, about EUR 2.5 billion of which are spent for solar photovoltaic (PV) and concentrated solar power (CSP) projects.

(EUR 1.0 = USD 1.173)

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