Germany's KfW grants EUR-150m loan to back solar in India
Solar park in India. Image by: Belectric Solar & Battery GmbH.
November 10 (Renewables Now) - German development bank KfW said on Thursday that it has signed an agreement to extend a EUR-150-million (USD 152.1m) loan to the State Bank of India (SBI) to support the solar energy development in India.
Through this partnership, SBI will use the funds to grant loans to project developers, which are expected to build enough solar farms to be able to generate over 600 GWh per year, the German bank said.
The latest is the second loan agreement that the parties signed, after the same amount of funds from the first one were disbursed. KfW is promoting the solar partnership with India on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).
According to KfW, 20% of India’s population is not connected to the power grid and the government is working on the electrification effort. When already grid-connected households start demanding more electricity in the future, consumption can be expected to increase rapidly. KfW says it is seeking to ensure that electrification does not become associated with more greenhouse gas emissions.
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