The World Bank Group announced a new collaboration on June 30 with the International Solar Alliance (ISA), which will result in $1 trillion in solar investments by 2030. The investments will mobilize financing to develop and install affordable solar across the globe. The World Bank also signed an additional agreement to loan $1 billion to finance solar projects in India.
“India’s plans to virtually triple the share of renewable energy by 2030 will both transform the country’s energy supply and have far-reaching global implications in the fight against climate change,” said World Bank Group President Jim Yong Kim. Kim as well as India’s Finance Minister Arun Jaitley were there to sign the agreement.
The World Bank has lent India roughly $4.8 billion to invest in solar between 2015 and 2016, solidifying the country as The World Bank’s largest client. In fact, just last month the World Bank and the State Bank of India (SBI) partnered on a $625 million loan to support the expansion of rooftop solar in the country. That document was also officially signed yesterday and will support at least 400 megawatts (MW) of solar installations. The partners are also developing a $200 million Shared Infrastructure for Solar Parks Project under a public-private model. Combined with the proposed $1 billion loan, these solar investments would total the largest financing of solar by the World Bank in a single country to date.
The World Bank already has a history of working with India. In fact, its private sector arm, the International Finance Corp., provided financing for India’s first grid-connected solar. It’s also working with the state of Madhya Pradesh to develop the “ultra-mega“ 750 megawatt Rewa solar power project. Which World Bank said will be the largest single-site solar project in the world.
The ISA, which consists of 121 countries already, was launched at the UN Climate Change Conference in Paris last November by Indian Prime Minister Narendra Modi and French President Francois Hollande. The alliance will help increase the amount of solar power throughout the world as it is doing through this and other partnerships. As part of the agreement announced on June 30 the partners will work with various banks and institutions to develop financing instruments to support the development and installation of solar throughout the world.Tweet