The World Bank has sanctioned a US$130M line of credit to India for expanding renewable energy projects. An additional US$5M grant is to be given for similar projects under the Global Environment Facility (GEF).
The move is to support the Indian government’s initiative to reduce power shortages and greenhouse gas emissions, through environmentally sustainable investment in small-scale power generation. India’s small hydro potential, estimated at 10,000MW, will be utilised. To date, only about 500MW of such projects have been commissioned with another 500MW under various stages of planning and construction.
The line of credit will be channelled through the Indian Renewable Energy Development Agency.