NIB loan to support renewable energy projects in India

NIB has provided a USD 50 million (EUR 34 million) loan to the Indian Renewable Energy Development Agency Ltd. (IREDA) for financing renewable energy projects in India.

The loan agreement between NIB and IREDA was signed on 30 March 2009. The 10-year-maturity loan will contribute to decreasing India’s dependence on fossil fuels by supporting renewable energy projects in the country. It is anticipated that most of the programme will be used to finance transfer of advanced environmental technology and equipment supplies from the Nordic and Baltic countries.

In order to decrease India’s dependence on fossil fuels such as coal, oil and gas, the country’s government is promoting energy conservation and the use of renewable energy sources. According to governmental plans, the share of renewable energy is to increase from the current 5% of India’s electricity generation capacity to 10% by 2012.

“This loan is well in line with NIB’s efforts to sharpen the focus in non-member lending. India is one of the countries where we see a high potential for fulfilling our mandate of enhancing competitiveness and the environment,” says Johnny Åkerholm, President and CEO of NIB.