The World Bank Group (WBG) has confirmed a loan of $1 billion to India, for India’s solar power program and intends to mobilize $1 trillion in finance for the India-led International Solar Alliance (ISA) by 2030. The $1 billion loan is approved to support the installation of 400 MW of rooftop solar power projects and setting the grid-connection and utility-scale solar power projects.
The bank has tied up with India’s largest bank like the State Bank of India, for the distribution of the funds, which are directed for solar power projects.
Solar Energy to Power India of the Future, feels the World Bank. According to Mr. Jim Kim, World Bank Group President, Indian Prime Minister Modi’s personal commitment towards renewable energy, especially solar, is the driving force behind the investments. “The world must turn to (the) sun to power our future,” India’s Prime Minister Narendra Modi said at the historic COP21 climate conference in Paris last year, adding that “As the developing world lifts billions of people into prosperity, our hope for a sustainable planet rests on a bold, global initiative”.
The loan follows funding pledges from the US and Germany, as major economies help wean India off coal.
India’s plan to ramp up solar power generation to 100 GW by 2022 is among the largest in the world. It also plans to triple the share of renewable energy by 2030, which will transform the country’s energy supply and have far-reaching global implications in the fight against climate change.