The World Bank has approved USD 1.5 billion (EUR 1.4 billion) in loans to India to bolster its efforts in deploying green hydrogen and expanding renewable energy infrastructure.
The financing, endorsed by the bank's board on Friday, includes a USD 1.46 billion loan from the International Bank for Reconstruction and Development (IBRD) and a USD 31.5 million credit from the International Development Association (IDA).
This financial support falls under the Second Low-Carbon Energy Programmatic Development Policy Operation, following a similar USD 1.5 billion operation sanctioned in June 2023. The previous operation facilitated waivers on transmission charges for renewable energy in green hydrogen projects.
The latest operation aims to enact reforms that will enable the production of at least 450,000 metric tonnes of green hydrogen annually and 1,500 megawatts of electrolysers starting from fiscal year 2025/26. The funding will also promote measures to enhance the adoption of renewable energy and battery energy storage solutions.
India's plan to issue tenders for 50 gigawatts of renewable energy capacity each year will benefit from these financing initiatives. The country's National Green Hydrogen Mission, launched early in 2023, is pivotal in achieving these goals, targeting the deployment of five million tonnes of annual green hydrogen production capacity alongside 125 gigawatts of new renewable energy installations.
