German-Indian collaboration advances India's transition to renewable energy

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Oskar von Maltzan Country Director Kenya | KfW Group

India's solar energy potential is being harnessed through a partnership with KfW, which has provided EUR 1 billion in subsidized loans from 2017 to 2023. These funds, given on behalf of the Federal Ministry for Economic Cooperation and Development, support various solar projects including photovoltaic systems and solar-powered irrigation pumps.

The initiative not only facilitates the installation of these systems but also equips project partners with the knowledge to plan and implement similar projects independently. This builds investor confidence in solar technology.

The funded plants replace the annual burning of 4 million tons of coal, eliminating related greenhouse gas emissions. The investments save over 6 million tons of carbon dioxide emissions annually, with an expected service life of around 25 years. This efficiency means that more greenhouse gases are saved per euro invested in India compared to Germany.

A notable example is the Sakri solar power plant, financed by KfW in 2013. It generates 125 MW and was India's largest at its inception. Annually saving 155,000 tons of carbon dioxide, it supplies electricity to 220,000 households and demonstrates the profitability of large-scale solar energy use in India.

Efficient electricity grids are crucial for transporting renewable energy to consumers. KfW has long been committed to creating "green corridors" that transport energy primarily from northern India to southern metropolitan areas.

KfW-financed projects adhere to international environmental and social standards. These include using less water for cleaning modules and protecting endangered species. Technical quality is evaluated based on international standards with expert support from KfW.

New technologies like improved storage media and green hydrogen promise further expansion of this partnership, supporting India's energy transition more effectively.

The German-Indian solar partnership has developed a strong foundation of mutual trust over time, crucial for finding effective climate action solutions together.