Under the Indo-German Solar Energy Partnership, Germany has agreed to provide financing support through KfW for solar photovoltaic investments
Bank of Baroda has tied up with Germany’s KfW Development Bank to extend funding of $113 million to refinance solar power projects in India.
The funding will be provided as part of the scheme Solar Partnership II – Promotion of Solar PV in India, under the Indo-German Solar Energy Partnership.
Under an inter-governmental agreement signed in 2015, Germany has committed to provide financial support through KfW Development Bank for solar photovoltaic investments.
India targeting 100 GW solar power by 2022
The Indian government has been making all efforts to achieve its 100 GW solar power target by 2022.
However, research and consultancy firm Wood Mackenzie had earlier stated that India is unlikely to achieve its target as the country faces short-term uncertainty due to imposition of various taxes on solar products.
According to the firm, India’s installed grid-connected power generation capacity increased 4 per cent from January to October 2018 to reach 347 GW.
Renewables accounted for 9.7 GW of the total increase of 13 GW, highlighting the significant investment flowing into the sector.
It also said that India is, and will be, the third largest solar market globally in 2018 and 2019, respectively.
The year-on-year growth rate of annual solar install capacity is expected to reduce from 63 per cent in 2017 to just over 1 per cent in 2018 before rebounding to over 12 per cent in 2019.
