ADB to lend $1 billion for green energy in India

Green finance

Bolstering India’s green energy ambitions, the multilateral lending agency Asian Development Bank (ADB) will provide USD 1 billion loan to central transmission utility Power Grid Corp for renewable energy transmission and grid expansion in India. “ADB is to provide a USD 500 million government-backed loan and a further US 500 million in non-sovereign lending to India’s national transmission company, Power Grid Corporation of India Limited,” ADB said in a statement
The announcement comes amid the ongoing climate summit negotiations in Paris, with India highlighting its plans to upscale renewable energy and pushing developed countries to raise the bar for climate finance.

The funds from ADB will be utilised to build and upgrade high voltage transmission lines and substations in Rajasthan and Punjab, as a part of the government’s Green Energy Corridor initiative. “To increase energy delivery from India’s west to southern region, the project will also include new high-voltage direct current terminals in Chhattisgarh, Tamil Nadu, and Kerala states, boosting interconnectivity between the regions from about 10 gigawatts (GW) to India is promoting the increased use of clean and renewable energy to meet growing power demand, provide universal electricity access, and increase energy self-sufficiency,” ADB said.

“The new transmission lines connecting renewable energy- rich areas to the national grid will enhance connectivity between the regions by bringing clean energy to more people, making the overall Indian power system more efficient, and improving India’s overall energy security,” Director General of ADB’s South Asia Department Hun Kim said in a statement. 

India has ambitious plans to achieve a national renewable energy target of 175GW by 2022, with 90 percent of it likely to be generated from solar and wind sources. These sources are however, limited to only a few states.

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