SBI signs €150 million loan agreement with KfW to finance solar projects in India
National Bank of India (SBI) has signed an agreement with Kreditanstalt für Wiederaufbau (KfW) to receive a low-interest loan of €150 million (~$150.66 million) to finance solar projects in India. The loan will mainly finance innovative technologies, such as automated dry cleaning of solar modules to reduce water consumption.
The Ministry of New and Renewable Energy has been recommend the use of robotic module cleaning technology, which uses less water to clean solar modules.
The application of robotic cleaning solutions is also economical when the size of projects increases. The larger the project, the higher the cost of manual labor to clean the panels, driving utility developers and solar farm operators to opt for automated cleaning solutions.
This is the second loan SBI has received from the German development bank. The first loan of 150 million euros (~$150.66 million) was granted in 2017 to finance larger solar farms of between 50 and 250 MW and the infrastructure to connect them to the electricity grid .
More than 600,000 MWh of renewable energy will be produced each year by the projects financed by the loans. The measures will also reduce greenhouse gas emissions by 500,000 tonnes of CO2 per year.
“We are helping the Indian government meet growing energy demand in environmentally friendly ways, including tapping into renewable energy sources and directing India’s electricity supply to greater use. solar energy. In this way, domestic and commercial electricity consumers benefit from environmentally and climate-friendly power generation,” said Christiane Laibach, member of the KfW Group Management.
KfW plans raise €80 billion (~$90.35 billion) to €85 billion (~$96 billion) in funding in 2022, which will include at least €10 billion (~$11.3 billion) ) green bond issues.
Last December, the Indian government and KfW sign agreements for a soft loan of 140 million euros (~$158.63 million) and a grant of 2 million euros (~$2.27 million) for an energy reform program in Madhya Pradesh . The project included the implementation of smart meters, advanced metering infrastructure and the separation of farm and non-farm power.
Previously, REC Limited, a public infrastructure finance company involved in financing energy projects, had Between reached an agreement with KfW to benefit from an official development assistance loan of 169.5 million dollars.
KfW and Bank of Baroda had announcement that they would provide $113 million in funding to refinance solar power projects in India under the Solar Partnership II – Promoting Solar Photovoltaic Power in India. Germany has pledged to provide financial support through the KfW development bank for solar PV investments.