Germany commits €2bn to solar energy in India

Germany will provide €2 billion (£1.47bn) to India to boost solar energy and green infrastructure across the country, as part of a new deal agreed on Monday.

A joint statement from the two nations confirmed that €1 billion will be delivered over five years to assist India in meeting its target of deploying 100 gigawatts of solar by 2022.

The remaining €1 billion will go towards “green energy corridors” linking major cities, and improving electricity access in rural areas.

India’s Prime Minister Narendra Modi and German Chancellor Angela Merkel also agreed to boost research cooperation in renewable energy and energy efficiency.

Modi said: “I admire German leadership in clean energy and commitment to combating climate change. This is an area where we have convergence of views, and rapidly growing cooperation… We look forward to a concrete outcome at COP21 in Paris that strengthens the commitment and the ability of the world, especially of poor and vulnerable countries, to transition to a more sustainable growth path.”

India published a target to generate 40 per cent of electricity from non-fossil fuel sources by 2030 last week, and will boost solar, wind and nuclear capacity to reach the target.

India submitted its Intended Nationally Determined Contribution (INDC) climate plan to the UN ahead of the crucial UN Climate Change Conference taking place in Paris in December which includes the target to cut its greenhouse gas emissions for each unit of GDP 33-35 per cent from 2005 levels by 2030.