NABARD gets $100 million through GCF for the Growth of Rooftop Solar in India
The National Bank for Agriculture and Rural Development (NABARD) has inked a pact with the Green Climate Fund (GCF) to infuse $100 million into a project designed to unlock private sector initiatives for the creation of rooftop solar photovoltaic (PV) power capacity across India.
The $250 million projects, to be executed by Tata Cleantech Capital Ltd, will receive the GCF support through NABARD, which is the National Implementing Entity (NIE) for the UNFCC promoted Fund that supports the efforts of developing countries to respond to the challenge of climate change.
Manish Chourasia, with TATA Cleantech Capital Limited, said the agreement will boost India’s solar sector by generating “flows of low-cost and long-term financing for the implementation of solar rooftop projects in industrial, commercial and residential sectors.” “This will not only improve power access but will also significantly reduce power cost to end consumers without increasing the carbon footprint,” he added.
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The agreement was signed by Shri Shankar A Pande, Chief General Manager, NABARD in the presence of Shri A K Mehta, Additional Secretary, Ministry of Environment, Forests and Climate Change (MoEFCC) at an event held on the sidelines of ongoing COP24 in Katowice, Poland. [NABARD]
The GCF had approved this $100 million line of credit for the development of solar rooftops by NABARD in March this year. The central role of the private sector in this project reflects a key GCF goal of using niche public-funded investments to nurture profitable markets forging low-emission and climate-resilient pathways.
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Shankar Pande, Chief General Manager NABARD, said that the GCF funding partnership with NABARD will provide a fillip to the Indian private sector’s expansion in rooftop solar energy, offering huge potential in both urban and rural areas. “The development of solar solutions would be of particular significance in pockets which experience power deficits and a lack of access to energy,” he added.
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Notably, India, which hosts the International Solar Alliance, has an ambitious vision of creating 100 GW of solar power capacity., of which 40 GW is planned for Rooftop. NABARD has been financing solar power projects and installations in various other programs as well. Earlier, the apex development bank held deliberations on financing climate resilient agriculture with global experts at the international climate change conference in a bid to showcase India’s commitment to fighting climate change.
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Tony Clamp, Deputy Director of GCF’s Private Sector Facility, said during the signing “we are delighted that this initiative demonstrates GCF’s strong support for the Indian private sector in delivering innovation through partnership to create a sustainable, low-carbon bankable model in response to climate change.” He added, “It will do this by enabling access to long-term and affordable financing for the construction of 250 MW of rooftop solar capacity across India – along with an estimated reduction of emissions by 5.2 million tonnes of CO2 equivalent.“
Ayush Verma
Ayush is a correspondent at iamrenew.com and writes on renewable energy and sustainability. As an engineering graduate trying to find his niche in the energy journalism segment, he also works as a staff writer for saurenergy.com.