The World Bank has granted $1.5 billion in financing to help India speed the development of low-carbon energy infrastructure. The World Bank said in a statement Friday (June 30) that the finance will assist India in boosting low-carbon energy by scaling up renewable energy and producing green hydrogen, among other things.

The programme intends to increase renewable energy supply by lowering prices and enhancing power grid integration. It also assists India in meeting its commitment to build 500 gigatonnes (GW) of renewable energy capacity by 2030.

The government intends to solicit bids for 50 GW of renewable energy annually from FY23-24 to FY27-28, avoiding 40 million tonnes of carbon emissions annually by 2026.

According to the World Bank, India is one of the world’s fastest-growing big economies. At the same time, India’s per capita energy consumption is barely one-third of the world average, but demand is predicted to rise significantly as the economy expands. India plans to reach net zero emissions by 2070.

India authorised the National Green Hydrogen Mission in early January. The mission’s initial funding investment is Rs 19,744 crore, which covers research and development operations. The green hydrogen mission will gradually decarbonise the industrial, transportation, and energy sectors.

The World Bank underlined its commitment to assisting India in developing green hydrogen, a low-carbon hydrogen energy created by water electrolysis using renewable energy. The government intends to increase yearly green hydrogen production to 5 million tonnes and add around 125 gigatonnes of renewable energy capacity under this programme.