According to reports, German bank KfW director (South Asia) Claudia Arce said India can increase renewable energy capacity to 175 GW 2022 but it needs to quickly take discoms on board, find a win a win situation for them, for banks and for the government so that they can go hand in hand.
Besides, India will have to focus on quality installations to attract more investors and also address the issue of certification.
She informed KfW had already provided 1.3 billion euros for Green Corridor project which is being completed while another 1 billion euros already sanctioned for solar capacity addition during 2015-2022.
Arce on the sidelines of InterSolar India conference told Business Standard, “India’s target of installing 175 GW of renewable capacity by 2022 is on the lines of what other countries including Germany did. India can do quicker to meet its goal. Even if it is completed by 2025 it is good achievement.”
However, she insisted that discoms will have to be convinced to embrace renewable targets. Further, the government will have to focus on quality installations during the renewable energy capacity addition.
“Because if you do not bring the quality installations people will invest but if the things after five years are broken people will not believe that the model will work. Therefore from the beginning India will have to look at quality and also address the issue with regard to certification so that people are not disappointed later on,” Arce said.
Arce informed that KfW about three years ago started flagship Green Corridor project by providing finance of 1.3 billion euros. “Under the green Corridor project, new transmission lines will feed the electricity obtained from renewable into the public network.Together with Powergrid’s national lines, states will strengthen the transmission network in India. Electricity will thus be transported more effectively in future,” she said.
Further, Arce said KfW will provide another 1 billion euros exclusively for the solar capacity addition in India. ”Now this year we are starting Indo German solar partnership and its mainly KfW is providing finance for the same. This would be another one billion euros in financing solar capacity addition. It will be spent during 2015 and 2020 but efforts will be made to complete early also as KfW did in case of Green Corridor project,” she noted.