KfW and Bank of Baroda to Refinance Solar Projects in India
The $113 million funding agreement is part of the Solar Partnership II – Promotion of Solar PV in India
German development bank, KfW, and Bank of Baroda have announced that they would extend funding of $113 million to refinance solar power projects in India under the Solar Partnership II – Promotion of Solar PV in India. This proposal constitutes part of the overarching Indo-German Solar Energy Partnership (IGEN), Bank of Baroda said in a statement on Friday. Under an inter-governmental MoU in 2015, Germany has committed to providing financing support through KfW Development Bank for solar photovoltaic investments.
The IGEN is being implemented by GIZ, on behalf of the German Federal Ministry for Economic Cooperation and Development. It liaises with the KfW Development Bank and works with its Indian partners. The energy program aims to promote measures to improve energy efficiency and integrate renewables into the grid.
In 2017, KfW signed an agreement with the State Bank of India for €150 million ($170 million). The goal of this line of credit was the expansion and conversion of India’s power supply towards more renewable energy sources by refinancing sub-loans to install solar power systems.
In November 2018, Mercom reported on the news of Regional Liquidity Support Facility (RLSF), a joint initiative between the African Trade Insurance Agency (ATI) and KfW, entering into an agreement with five African countries to provide financial assistance to their independent power producers (IPPs) against payment risks. The funding for this program also came from the German Federal Ministry for Economic Cooperation and Development. This would support small and mid-scale renewable energy projects of capacities ranging from 50 MW to 100 MW in sub-Saharan Africa by helping these projects reach financial closure.
Mercom also reported on KfW along with the European Union financing a landmark power transmission project in Nepal.
Shaurya is a staff reporter at MercomIndia.com with experience working in the Indian solar energy industry for the past four years in various roles. Prior to joining Mercom, Shaurya worked with a renewable energy developer and a consulting company. Shaurya holds a Bachelors Degree in Business Management from Lancaster University in the United Kingdom.