India: record EUR 1 billion EIB support for global solar investment confirmed ahead of International Solar Alliance summit
9 March 2018
Largest ever backing for solar investment by world’s largest international public bank
India leading country for EIB solar investment
Strengthened engagement for solar energy in developing and emerging economies expected
In 2017 the European Investment Bank provided EUR 1.05 billion of new financing for solar energy projects around the world, representing the largest ever annual support by the EIB to the solar sector.
Ahead of the Founding Conference of the International Solar Alliance in New Delhi the European Investment Bank also confirmed strengthened engagement to support significant expansion of solar energy in developing and emerging economies.
“Solar power is providing clean energy for millions of people around the world and solar energy now represents the single largest source of new power generation. The fate of this planet depends on continuing to expand the use of renewable energy to support sustainable economic growth. This can be achieved through improved access to energy alongside scaling up a viable alternative to fossil fuels. The European Investment Bank – the EU bank – welcomes the vision of the International Solar Alliance to ensure those countries most vulnerable to climate change can harness the proven potential of solar power,” said Werner Hoyer, President of the European Investment Bank.
India leading focus of EIB backed solar investment outside Europe
India was the leading recipient of EIB financing for solar investment outside the European Union, both in 2017 and overall since 2013. The EIB has approved a total of EUR 640 million of new investment in solar projects in India set to provide clean energy to an estimated 4.2 million households and save more than 4 million tons of carbon emissions.
“The European Union and India are committed to implementing the Paris Climate agreement and working together to achieve Sustainable Development Goals, including ensuring access to affordable, reliable, sustainable and modern energy for all. As the European Union’s bank, the EIB has a strong track record of supporting transformational investment in India and working with Indian partners to enhance solar investment across this country to benefit millions of Indian households.” said H.E. Mr. Tomasz Kozlowski, Ambassador of the European Union.
President Werner Hoyer will lead a high-level European Investment Bank Delegation to attend the International Solar Alliance summit, taking place in New Delhi this week. During the visit the EIB will confirm significant new support for EUR 500 million of new renewable energy investment across India in partnership with the Indian Renewable Energy Development Agency (IREDA).
Strengthened EIB financing for solar investment in developing and emerging economies
The European Investment Bank is committed to increasing support for climate related investment, including renewable energy, in developing and emerging economies to represent 35% of overall financing activity.
“More than a trillion dollars of new solar investment will be required by 2030 to deploy affordable solar energy. The European Investment Bank has a unique technical and financing experience of supporting solar projects around the world, enabling new research to further reduce deployment costs and mobilising renewable energy investment. The International Solar Alliance looks forward to welcoming President Hoyer and his colleagues to New Delhi to discuss strengthened cooperation in the years ahead.” said H.E. Upendra Tripathy, Interim Director General of the International Solar Alliance.
During the International Solar Alliance summit the EIB will outline the key role of solar energy investment across a range of technologies to reduce carbon emissions and increase access to clean energy.
Global support for solar investment to address local energy priorities
New EIB financing for solar investment in 2017 included backing for new projects in India, Mexico and Peru, as well as 13 European Union countries.
Since 2002 the EIB has financed more than EUR 6.35 billion of new solar energy investment and 50% of solar investment financed by the EIB in the last 7 years is located in developing and emerging economies. Reflecting the global solar engagement in recent years the EIB has financed photovoltaic and concentrated solar power projects across Africa in Morocco, South Africa and Burkina Faso, in Latin America in Nicaragua and Peru, in Asia in India and Vietnam as well as Turkey and Israel.
This has enabled significant expansion of access to energy using clean power production and contributed to improved economic activity and social benefits. In the coming weeks the EIB is expected to confirm significant financing for off-grid solar projects across Africa.
Further information about EIB support for solar investment, engagement in India and activities around the International Solar Alliance summit can be found here
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The EIB will invest €650 million into the construction of Kanpur’s first city metro line, enabling some 3 million people in the city of Kanpur, India, to benefit from green, safe, fast and affordable public transport. The new metro rail system will reduce commuting hours and unlock new employment and education opportunities in Kanpur, the industrial capital of Uttar Pradesh. This is the second metro rail project supported by the EIB in Uttar Pradesh, following the €450 million investment in the development of a metro rail system in the city of Lucknow.
The EIB will invest EUR 600 million in construction of two new lines of the metro rail and acquisition of 102 modern metro cars in the city of Pune, India. The new metro rail system will reduce commuting hours for more than three million people living in the city. This is the fourth EIB investment in metro rail systems in India; to date the EU`s Bank supported metro rail systems in Bhopal, Bangalore and Lucknow. With the Pune investment, the total amount of the EIB approved support for metro rail systems in India reached EUR 2 billion.