World Bank approves $1.5 billion in financing for green H2 projects in India | India News

NEW DELHI: The World Bank’s executive board has approved a $1.5 billion loan to help India accelerate its low-carbon energy development. According to the multilateral agency, the operation will aim to promote the development of a vibrant green hydrogen market, further scale up renewable energy and stimulate financing for low-carbon energy investments.

The program will support reforms to increase the production of green hydrogen and electrolyzers. It also supports reforms to increase the penetration of renewable energy, for example by encouraging the use of battery storage solutions and amending India’s electricity grid code to improve the integration of renewable energy into the grid. The financing includes a $1.46 billion loan from the International Bank for Reconstruction and Development (IBRD) and a $31.5 million credit from the International Development Association (IDA).

“The World Bank is pleased to continue to support India’s low-emission development strategy, which will help achieve the country’s net-zero emissions goal while creating clean energy jobs in the private sector,” said Auguste Tano Kouame, World Bank Director for India.

The reforms are expected to lead to the production of at least 450,000 metric tons of green hydrogen and 1,500 MW of electrolyzers per year from FY25/26. They will also help increase renewable energy capacity and support emissions reductions of 50 million tons per year.