Green Hydrogen – World Bank $1.5 billion to support renewable energy in India

Green Hydrogen – The World Bank has allocated $1.5 billion to support renewable energy sources in India.

The World Bank has approved a $1.5 billion loan to help India accelerate its low-carbon energy development, with a focus on green hydrogen, electrolyzers and renewable energy. This marks the second round of financing from the World Bank for India’s green energy initiatives. The initial $1.5 billion loan, approved in June 2023, was aimed at developing low-carbon energy by supporting renewable energy projects and creating a legal framework for a domestic carbon credit market.

The new funding will expand green hydrogen production and consumption and accelerate the development of climate finance. The second operation of the World Bank’s Low Carbon Energy Program Development Policy will support reforms to increase green hydrogen production and electrolyzers, which are essential for creating green hydrogen. It also aims to increase renewable energy penetration by encouraging battery storage and amending India’s electricity grid code to better integrate renewable energy.

India’s ambitious energy transformation goals include achieving 500 GW of installed renewable energy capacity by 2030 and achieving net zero emissions by 2070. The government has also launched a ₹17,000 crore National Green Hydrogen Mission to promote the production of electrolysers and green hydrogen. The World Bank’s efforts support these goals by removing transmission charges for renewable energy on green hydrogen projects, launching 50 GW of renewable energy tenders annually and creating a domestic market for carbon credits.

The reforms are expected to produce 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 reduce emissions by 50 million metric tons per year. The operation supports the development of a domestic carbon credit market and is in line with the Government of India’s energy security and Hydrogen Bank for Development (H4D) partnership. 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).

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Green Hydrogen – World Bank supports renewable energy in India with $1.5 billion. source