EIB backs renewables growth in India

The bank has partnered with the International Solar Alliance, while also finalising €800m in financing for renewable energy projects in the country.

The European Investment Bank is looking to finance the development of energy projects in solar-rich countries, announcing a partnership with the International Solar Alliance along with an €800 million investment in renewables projects in India.

The deal with the ISA – a group of 121 countries led by India aiming to harness their solar potential – will help mobilise financing for solar projects in the group’s member countries, many of which are located near the equator and receive high levels of sunlight.

Andrew McDowell, EIB’s vice-president, said the deal “will mobilise international climate finance and improve sharing of technical experience”, pointing to the Paris climate agreement.

EIB’s €800 million commitment to India will back small-scale renewables projects, including partnerships with the Indian Renewable Energy Development Agency and the India Infrastructure Finance Company. The bank is also finalising a €200 million credit line in co-operation with Mumbai-based Yes Bank to finance renewable projects across India.

Multilateral banks have played a growing role in financing climate-friendly projects in recent years. Last year, the six largest MDBs, including EIB, contributed $27.4 billion to such projects, up $2.3 billion from the previous year. EIB’s contribution was $4.3 billion, down $900 million from 2015.