EIB support for renewable energy and energy efficiency projects in India
- Release date: 13 September 2013
- Reference: 2013-137-EN
The European Investment Bank (EIB) has signed a EUR 40 million long-term loan to SREI Infrastructure Finance Limited (SREI), with the main purpose of financing investments that will help to mitigate climate change in India. The loan will be supported by the Italian Export Credit Agency SACE S.p.A. This tripartite cooperation will not only help project financing in India but also support Italian industry by promoting exports. Both the EU and Indian economies will eventually benefit from this arrangement. This is the first instalment of a EUR 80 million loan.
The loan is for projects in the renewable energy and energy efficiency sectors carried out mostly by private sector companies. It will target electricity and heat generation schemes, notably wind power, photovoltaic energy, hydropower and high-efficiency cogeneration. The investments will help to meet India’s rapidly growing demand for electricity by using environmentally sustainable resources. They will also generate economic benefits for the region by developing domestic energy resources, improving energy efficiency and reducing airborne pollution and greenhouse gas emissions.
SREI will on-lend the funds to final beneficiaries and identify and pre-select the projects. The EIB will then perform due diligence to ensure that all projects are economically and financially viable, technically appropriate and in compliance with the Bank’s environmental and social requirements and its Guide to Procurement.
This loan is being provided under the EUR 4.5 billion Energy Sustainability and Security of Supply Facility (ESF).
Since the start of its lending activities in Asia the European Investment Bank has provided more than EUR 4.9 billion for long-term investment projects, including EUR 2.2 billion in the energy sector.