The European Investment Bank (EIB) has confirmed it is going to increase its support to investment in onshore wind through the expansion of an existing lending program with the State Bank of India (SBI).
Under the agreement, promoters of onshore wind projects will be able to benefit from long-term low-cost financing under a dedicated €600 million (~$684 million) renewable energy financing program which is already supporting large-scale solar investment across India. Programs that could benefit from the expanded EIB-SBI financing have already been identified in several Indian states.
The EIB has also approved a new credit line with YES Bank to accelerate private investment in wind and solar energy projects and expects to work closely with Indian partners to support offshore wind projects.
Over the last year, through close cooperation the EIB and Yes Bank have identified solar power projects and wind farms across India that will benefit from a dedicated renewable energy credit line, backed with €80 million of EIB financing. Following successful progress in allocating this financing, a second renewable energy credit line is currently being finalized and expected to be rolled out in the coming months.
The clean energy financing was confirmed by European Investment Bank Vice President Andrew McDowell at an offshore energy investment conference in New Delhi.
“Scaling up renewable energy investment is crucial for economic growth, improving access to energy and addressing climate change and support for renewable is a key priority for the European Investment Bank, the EU Bank, here in India. The EIB is pleased to host our first offshore wind investment conference in New Delhi and bring together technical and financial expertise from across India and the European Union’s unique global experience in the sector,” said Andrew McDowell, Vice President of the European Investment Bank responsible for Energy and South Asia.
With this investment into India’s renewable energy, the growth trajectory of renewables in the country could take a new turn. In December 2017, YES Bank and EIB collaborated to formulate a renewable energy financing program for India. EIB pledged to provide $200 million for the joint initiative as a 15-year loan.
Mercom previously reported that the EIB had said it would provide €800 million (~$912 million) in funding for renewable energy investments across India. This included renewable energy financing in partnership with the Indian Renewable Energy Development Agency (IREDA) and the India Infrastructure Finance Company (IIFCL) approved in 2017.
Before this, Mercom also reported in April 2017 when the EIB approved a €200 million (~$227 million), 20-year loan to SBI which will be utilized to help develop large scale solar projects in India.