India’s ambitious solar power program has received another major boost from the World Bank.
The World Bank recently announced funding worth $1 billion for grid-connected and utility-scale solar power projects. The Bank has tied up with India’s largest bank – State Bank of India – for dispersal of the funds, which are targeted at rooftop solar power projects.
The World Bank Board approved a loan of $625 million and an additional loan of $120 million at concessional rates. A $5 million grant was also announced by Climate Investment Fund’s (CIF) Clean Technology Fund.
This funding is expected to support the installation of 400 MW of rooftop solar power projects, an extremely small part (1%) of the 40 GW of installed rooftop solar power capacity targeted by March 2022.
The World Bank earlier issued a loan of $500 million for developing infrastructure to support rooftop solar power systems. Other development banks – including KfW, the Asian Development Bank, and the New Development Bank – are also supporting India’s rooftop solar power program.
Additionally, the World Bank signed an agreement with the International Solar Alliance (ISA) that aims to mobilize $1 trillion in global solar power investments by 2030. The World Bank shall serve as the financial partner to ISA.