World Bank supports India’s green hydrogen and renewable energy development with $1.5bn
The World Bank last week (June 29) approved $1.5bn in financing to help India promote low-carbon energy by scaling up renewable energy, developing green hydrogen and stimulating climate finance for low-carbon energy investments, according to H2 View.
Under a Low-Carbon Energy Development Policy Loan, the World Bank looks to support three themes of India’s Long-Term Low-Carbon Development Strategy, launched at COP27 last year (2022), including green hydrogen.
It comes as part of the first Low-Carbon Energy Programmatic Development Policy Operation – in a series of two envisaged operations.
Aimed at strengthening India’s policies and regulations to increase market demand and reduce costs and viability gaps for the production of green hydrogen, the financing will target stimulating private finance and reducing offtaker risks.
Due to the additional renewable power requirements for green hydrogen production, the World Bank will also target the scaling up of renewable energy supply, reducing costs for production while improving grid integration.
Additionally, the operation will hope to enhance climate financing to meet the large investment needs for green hydrogen and renewable energy by supporting the launch of a national carbon market.
It comes after India earlier this year (2023) approved its $2bn comprehensive incentive plan to boost its green hydrogen development, under its Green Hydrogen Mission.
