- EIB has approved a second credit line €150 million ($184.9 million) to support renewable energy investment by IREDA
- For this line of credit, EIB did not insist on sovereign guarantee from the Government of India
- All the renewable energy schemes to benefit under this credit line will support more than 1.1 million households in India
- The new credit line is expected to leverage €500 million ($616 million) of renewable investment and support construction of both new PV power schemes and on-shore wind farms at sites across India
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The European Investment Bank (EIB) has approved providing a long-term loan of €150 million ($184.9 million) to Indian Renewable Energy Development Agency (IREDA) for renewable energy investment in the country.
It is the second line of credit for IREDA. The first one was approved in 2014 and led to 520 MW of clean power generation capacity, including the support of incentive schemes for 291 MW of PV.
The second line of credit has been approved by the EIB without insisting for a sovereign guarantee from the Government of India. Clean energy generated by renewable energy schemes financed under this will benefit more than 1.1 million households in India.
“The speed with which the second line of credit was negotiated shows the mutual confidence and comfort that EIB and IREDA had developed after working with each other for last 4 years,” said Chairman and MD of IREDA, Kuljit Singh Popli.
According to the EIB, the new credit line will support €500 million ($616 million) of renewable investment and support construction of both new PV power schemes and on-shore wind farms at sites across India. It is expected to result in the creation of hundreds of jobs during the construction and operational period. Together all the new schemes are expected to generate 1,156 GWh of clean energy when operating at maximum capacity.
In 2017, EIB approved a €200 million ($213.4) million loan for five large scale PV projects in India to the State Bank of India (SBI). Back then, an EIB delegation met the Managing Directors of IREDA and the India Infrastructure Finance Company Limited (IIFCL) to discuss future support for renewable projects in the country (see €200 Million EIB Loan For Indian Solar Plants).
The cooperation with IIFCL will lend EIB support to renewable energy schemes in Tamil Nadu, Telangana and Anantpur, among others. It was signed ahead of the International Solar Alliance held at New Delhi (see Big Announcements At ISA Conference).
Since 2013, EIB has approved a total of €640 million ($789.57 million) of new investment in solar projects in India. In 2017 alone, the bank provided €1.05 billion ($1.30 billion) new financing for solar energy projects around the world. This backed new solar projects in India, Mexico and Peru along with 13 EU nations.