KfW loan of EUR 150 million supports further solar energy expansion in India

KfW has signed a loan agreement for EUR 150 million with the State Bank of India to further support solar energy development. This funding, provided on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), follows a previous EUR 150 million loan granted in 2017 for similar purposes.

The initiative focuses on financing larger solar farms, with capacities ranging from 50 to 250 megawatts, and includes the necessary grid connection infrastructure. The program also promotes the adoption of cutting-edge technologies, such as automated dry cleaning for solar modules, which significantly reduces water consumption.

"We are helping the Indian government to meet the increasing demand for energy with environmentally sustainable means, including tapping into renewable sources and steering India’s power supply towards greater use of solar energy," stated Christiane Laibach, Member of the Executive Board of KfW Group. "In this way, household and commercial electricity consumers benefit from environmentally and climate-friendly electricity generation."

The solar installations supported by the previous and current phases of this partnership are projected to generate over 600,000 megawatt-hours of electricity annually. The measures are also expected to reduce an increase in greenhouse gas emissions by approximately 500,000 tonnes of CO2 per year, contributing to India's climate goals.