World Bank Approves $1.5 Billion for India’s Low-Carbon Energy Development

The World Bank’s Board of Executive Directors has sanctioned $1.5 billion in funding for a second initiative aimed at aiding India in advancing its low-carbon energy initiatives.

This initiative seeks to bolster India’s efforts in scaling up renewable energy, promoting the development of a vibrant green hydrogen market, and mobilizing finance for low-carbon energy investments.

Support for Green Hydrogen Market:

The operation focuses on promoting the development of a vibrant market for green hydrogen, which is crucial for achieving India’s ambitious climate goals.

Green hydrogen, produced using renewable energy sources, is seen as a key technology in decarbonizing hard-to-abate sectors like industry and transport.

India’s Economic Growth and Emission Goals:

India, recognized as the fastest-growing large economy globally, faces the challenge of sustaining economic growth while curbing emissions.

The initiative aims to achieve this by accelerating the deployment of renewable energy infrastructure across the country.

Focus on Green Hydrogen and Electrolyzers:

A significant portion of the funding will support reforms to enhance the production of green hydrogen.

This includes investments in critical technologies such as electrolyzers, essential for the efficient production of green hydrogen from renewable sources like wind and solar.

Reforms in Renewable Energy Integration:

The initiative also supports reforms aimed at improving the integration of renewable energy into India’s electricity grid. This includes incentivizing battery energy storage solutions and amending regulatory frameworks to facilitate greater renewable energy penetration.

Impact and Expected Results:

By fiscal year 2025/26, the operation aims to produce at least 450,000 metric tons of green hydrogen annually and deploy 1,500 MW of electrolyzers. These efforts are expected to significantly increase India’s renewable energy capacity and reduce greenhouse gas emissions by an estimated 50 million tons per year.

Support for India’s Net-Zero Target:

The initiative aligns closely with India’s strategy to achieve its net-zero emissions target.

It is anticipated to create numerous clean energy jobs in the private sector, contributing to economic growth while advancing sustainability goals.

By Auguste Tano Kouame, World Bank Country Director for India.