Washington, DC – The governing board of the Climate Investment Funds (CIF) has signed off on a catalytic investment plan, expected to mobilize almost $1 billion overall to support India in adapting its energy distribution systems to cater for a dramatic expansion in intermittent power. The decision allocates $70 million in low-cost CIF finance and is aligned with the country’s nationally determined contribution goal of 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.
Absorbing and dispatching intermittent power to meet rapidly rising demand will only be possible if the national grid is upgraded and storage capacity is significantly increased. By proving the commercial viability of energy solutions and lowering upfront costs, highly concessional finance from CIF’s Renewable Energy Integration (REI) investment program will accelerate this transition. It is expected to mobilize $865 million in additional finance from multilateral development banks and the private sector, bringing the total expected investments to $935 million.
Implemented by the Asian Development Bank and the World Bank Group, the plan will help upgrade India’s energy system by deploying energy storage to ensure round-the-clock energy for commercial and industrial sectors, strengthening and expanding critical energy transmission and distribution lines, and creating robust renewable energy integration value chains. Private sector buy-in will be encouraged, including through risk-sharing facilities and lines of credit for offshore wind energy development.
Overall, these investments are designed to increase energy capacity, lower costs and stimulate India’s energy integration market, essential for achieving a national scale-up in renewable power. Expected results include over 4200 ckm (circuit kilometers) of transmission and distribution lines constructed; over 1500 MWh of increased energy storage capacity; approximately 14,000 green jobs created; improved electricity reliability; and reduce greenhouse gas emissions by approximately 3.5 MtCO2/year.
CIF REI is the world’s only finance program entirely dedicated to renewable energy integration. Through highly concessional funding, the program supports developing economies to build efficient and effective energy systems capable of enabling the large-scale deployment of intermittent power. REI investment plans for Brazil, Colombia, Costa Rica, Fiji, Kenya, Mali, and Türkiye were endorsed in 2023 and 2024.
Quotes
- Tariye Gbadegesin – CEO, Climate Investment Funds
“As home to one sixth of the world’s population and with electricity demand soaring, India’s next moves will be decisive. A modern, flexible grid is essential for both quality of life and economic growth. By going in first and derisking investments in critical infrastructure, CIF is doing our part to ensure India has enough cheap and reliable energy for all.”
- Shri Ajay Seth – Secretary, Department of Economic Affairs, Ministry of Finance, Republic of India
“Government of India has been undertaking ambitious climate action. Under our updated NDC, we aim to achieve about 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030. As of 30th November 2024, 46.8 per cent of the installed capacity is from non-fossil fuel-based energy resources. We welcome the approval of the Renewable Energy Integration Investment Plan (REI IP) for India which will unlock $70 million in concessional funding from CIF and mobilize $865 million in finance. Given the magnitude and scale of our energy transition, the REI IP will provide a further impetus to achieving India’s climate goals and attracting private sector investment across our REI value chain.”
- Mio Oka – Country Director for India, Asian Development Bank (ADB)
“Innovative approaches to incentivize greater public and private investment are urgently needed to help accelerate the shift to clean and renewable energy in India, which has a burgeoning economy and the world’s largest population. The recent approval of India’s Renewable Energy Integration Investment Plan by the Climate Investment Funds’ (CIF) Board will address this by supporting India’s holistic energy transition towards fulfilling its climate change mitigation ambitions.”
- Imad N. Fakhoury – Regional Director for South Asia, International Finance Corporation (IFC)
“IFC welcomes the endorsement of India’s Renewable Energy Integration Investment Plan, a significant milestone in the country’s journey towards a sustainable and resilient energy future. Our collaboration with the Government of India and other partners aims to accelerate the clean energy transition by leveraging private sector expertise and resources. By focusing on strategic deployment of energy storage systems and strengthening grid infrastructure we are committed to enhancing energy security, supporting inclusive economic growth, and fostering environmental sustainability. This initiative underscores our shared priorities of driving innovation, improving energy access, and building a sustainable future for all.”
- Auguste Tano Kouame – Country Director for India, World Bank
“The World Bank has supported India’s broader energy transition program with $6 billion in financing over the past decade in technical and financial support. Going forward, the collaboration between India, the Asian Development Bank, and the World Bank Group, including through the CIF renewable energy investment plan, will be instrumental in advancing emerging renewable energy technologies, reducing carbon emissions, and promoting sustainable growth.”
