India taps regional lenders ADB, AIIB for $1bln funding in solar and wind energy

India aims to triple its renewable power capacity by 2022 to 175GW; that would cost about $42 billion a year through 2030 to meet its renewable energy potential.

BE2C2 Report — The Asian Development Bank and the Asian Infrastructure Investment Bank said they were backing $500 million in government-backed loans and another $500 million in non-sovereign support for the Power Grid Corp. of India.

“We are pleased that this first AIIB co-financed project in India will bring clean energy to more people and help the country achieve its ambitious renewable energy targets,” Priyantha Wijayatunga, a regional energy director for the ADB, said in a statement.

The two loans will support grid systems in western and southern India that deliver solar and wind energy across the grid.

India aims to triple its renewable power capacity by 2022 to 175 gigawatts by drawing on new solar and wind energy sources. Last week, French energy company ENGIE said it teamed up with an investment group to help develop a wind energy program in the country.

The company formed a partnership with Dubai-based Abraaj investment group — a private equity firm operating, to develop as much as 1 gigawatt of wind power in the Indian renewable energy sector having a potential of about $42 billion a year through 2030.

The International Monetary Fund warned earlier this year, however, that India may have trouble attracting new capital because of weakness in the nation’s banking system.

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