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India to get $1 Billion ExIm Bank Credit, nearly all of it for renewable energy development

Renewables to Get Most of $1 Billion ExIm Bank Credit Reed Landberg (Bloomberg) 27 Mar 15 – Renewable energy developers will receive “the vast majority” of a $1 billion credit line the Export-Import Bank of the U.S. extended to India, the institution’s president said.

Regulatory policies in India, including terms for selling power, are conducive to financing solar- and wind-power projects, and make it easier for the bank to ensure it will be repaid, said Fred Hochberg, who is also chairman of the Washington-based lender.

The comments are an indication that the ExIm bank’s funding for renewables is poised to rise ….. The credit line sealed during President Barack Obama’s visit with Indian Prime Minister Narendra Modi in January is part of the U.S. effort to back an unprecedented expansion of clean energy in developing nations and check rising pollution blamed for global warming.

India’s Ambitions

Modi wants to install by 2022 five times as many photovoltaics as the U.S. has now, an ambition that may cost $160 billion, according to the Council on Energy, Environment & Water, a research group in New Delhi. Obama wants India to join in a global deal limiting greenhouse gases, and India’s ministers are seeking financial support from the West to cut the cost of emissions.

The U.S. developer SunEdison Inc. announced in January plans to build as much as 5 gigawatts of wind and solar power in India, and First Solar Inc., the largest U.S. solar manufacturer, is also developing power plants in the country. Regulations in India permit power purchase agreements that extend as long as 20 years. That makes it easier for banks to finance solar and wind projects…….http://www.bloomberg.com/news/articles/2015-03-26/renewables-to-get-most-of-1-billion-exim-bank-credit

March 28, 2015 - Posted by Christina Macpherson | business and costs, India, renewable