India: EIB unveils offshore wind initiative and strengthens backing for renewables with SBI and Yes Bank
23 November 2018
The world’s largest international financier for renewable energy, the European Investment Bank, today confirmed new backing for investment across India. The EIB will increase support for onshore wind investment through expansion of an existing lending programme with the State Bank of India, has approved a new credit line with Yes Bank to accelerate private investment in wind and solar projects and expects to work closely with Indian partners to support offshore wind projects.
The clean energy financing was confirmed by European Investment Bank Vice President Andrew McDowell at an offshore energy investment conference in New Delhi earlier today.
“Scaling up renewable energy investment is crucial for economic growth, improving access to energy and addressing climate change and support for renewable is a key priority for the European Investment Bank, the EU Bank, here in India. The EIB is pleased to host our first offshore wind investment conference in New Delhi and bring together technical and financial expertise from across India and the European Union’s unique global experience in the sector. We look forward to broadening cooperation with Indian partners to support new renewable energy projects in the months ahead and enabling offshore wind to contribute to clean power generation in the country.” said Andrew McDowell, Vice President of the European Investment Bank responsible for Energy and South Asia.
“The European Union and India share a common goal of tackling climate change. India has huge renewable energy resources and harnessing India’s abundant natural resources is crucial for sustainable development. Supporting energy investment is a key focus of the European Union’s India strategy announced this week and my colleagues are working closely with Indian partners to further develop India’s offshore wind sector. Today’s conference demonstrates the European Union’s firm commitment to support expansion of clean energy in India and as the Bank of the European Union, the European Investment Bank, has a unique technical and financial experience that is already backing transformational renewable energy projects across the country.” said H.E. Tomasz Kozlowski, European Union Ambassador to India.
Sharing global experience to unlock investment in Indian offshore wind sector
Government officials, policy experts, business leader, public and private sector project promoters and financial professionals attended the European Investment Bank’s first offshore wind investment conference in India. The EIB has a unique track record supporting expansion of offshore wind over the last 15 years and the conference enabled experience from successful offshore wind investment to benefit India.
Technical experts from the European Investment Bank highlighted how the public sector can accelerate deployment of innovative renewable energy technology and identified infrastructure, skills and financial mechanisms that have enabled offshore wind to become a key source of clean energy in a number of European countries.
Partnership with State Bank of India to unlock new onshore wind investment
Alongside today’s conference the European Investment Bank and State Bank of India formally agreed to build on successful cooperation to finance renewable energy provide new support for wind energy projects across India by expanding an ongoing financing initiative to support onshore wind projects.
Under the agreement promoters of onshore wind projects will be able to benefit from long-term low cost financing under a dedicated EUR 600 million renewable energy financing programme already supporting large scale solar investment across India.
Preliminary discussions with promoters in a number of Indian states have already identified schemes that could benefit from the expanded EIB-SBI financing.
New Yes Bank renewable financing initiative approved
Over the last year close cooperation between the European Investment Bank and Yes Bank has identified solar power projects and wind farms across India that will benefit from a dedicated renewable energy credit line, backed with EUR 80 million of EIB financing. Following successful progress in allocating this financing a second renewable energy credit line is currently being finalised and expected to be rolled out in the coming months.
In 2017 EIB provided EUR 4.4 billion for renewable energy investment worldwide and in recent years has supported projects across Asia, Africa, Latin America and Europe.
Since support for climate related investment became a formal priority in 2010, the EIB has invested over EUR 130 billion globally, supporting more than EUR 600 billion in climate action investment.
The EIB today confirmed new support for solar power generation in India in partnership with the State Bank of India. The EUR 200 million (INR1,400 Crores) long-term loan will support total investment of EUR 650 million in five different large-scale photo-voltaic solar power projects and contribute to India’s National Solar mission and reduce dependence on fossil fuel power generation. Four schemes across the country, with a generation capacity of 530 MWac, have already been identified.
Ahead of the International Solar Alliance summit in New Delhi the President of the EIB today signed a new EUR 150 million long-term loan with the Indian Renewable Energy Development Agency (IREDA) to support renewable energy investment across India. More than 1.1 million Indian households expected to benefit from clean energy produced by renewable energy schemes financed by the new initiative.
Finance Minister Jaitley inaugurates the new EIB Regional Representation for South Asia in New Delhi, following agreements for EUR 450m of new support for sustainable transport and renewable energy projects.