The World Bank has announced a $1.5 billion loan to India to support the acceleration of low-carbon energy development, marking the second operation of its kind. This follows an initial $1.5 billion tranche approved in June last year. The funds will facilitate the creation of a green hydrogen market and the expansion of renewable energy sources like solar and wind.
This new initiative, part of the Second Low-Carbon Energy Programmatic Development Policy Operation, aims to boost green hydrogen and electrolyser production, crucial for green hydrogen generation. It also focuses on increasing renewable energy penetration through incentives for battery energy storage solutions and updates to the Indian Electricity Grid Code to better integrate renewable energy.
The reforms are projected to yield the production of 450,000 metric tonnes of green hydrogen and 1,500 MW of electrolysers annually starting from the next financial year. Additionally, they are expected to enhance renewable energy capacity and cut emissions by 50 million tonnes per year. The operation also supports the development of a national carbon credit market, aiming to attract significant private sector investment in green hydrogen and renewable energy.
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