The World Bank’s Board of Executive Directors has approved $1.5 billion in financing to support India’s development of low-carbon energy. This is the second initiative aimed at promoting a green hydrogen market, increasing renewable energy, and stimulating the economy for low-carbon investments. As an economy large and rapidly growing sector, India aims to reduce the gap between economic growth and increased emissions, especially in hard-to-reduce technology sectors.
The Second Low-Carbon Energy Programmatic Development Policy Operation will support reforms to boost green hydrogen and electrolyser production, essential for green hydrogen generation. It will also enhance renewable energy penetration by incentivising battery energy storage solutions and updating the Indian Electricity Grid Code for better integration of renewable energy.
In June 2023, the World Bank approved the first $1.5 billion operation, which supported the waiver of transmission charges for renewable energy in green hydrogen projects and laid out a plan for 50 GW of renewable energy tenders annually. This second operation continues these efforts, expecting to produce at least 450,000 metric tonnes of green hydrogen and 1,500 MW of electrolysers per year from FY25/26 onwards, while significantly increasing renewable energy capacity and reducing emissions by 50 million tonnes annually.
The financing includes a $1.46 billion loan from the International Bank for Reconstruction and Development (IBRD) and a $31.5 million credit from the International Development Association (IDA).
