Renewable Energy: Japan to Finance Projects in India

India is committed to reducing its use of fossil fuels and is actively seeking international partners to increase renewable energy production. On Thursday, March 28, a $130 million agreement was signed between India’s state-owned NHPC, the leading company in the hydropower sector, and the Japan Bank for International Cooperation (JBIC), which has committed to financing “some promising green energy projects in India.” Japanese commercial banks MUFG Bank and Bank of Yokohama will also participate in the financing in India.

There are several projects under consideration, from building a mini-hydropower plant to solar and even a wind farm. The India-Japan agreement is aimed at promoting the reduction of greenhouse gas emissions and consequently combating air pollution, especially in major population centers such as New Delhi, Mumbai, and Madras.

Another active focus area of the Narendra Modi government concerns increasing nuclear power generation. India wants to more than triple its nuclear power generation capacity by 2030 from the current 7.5 GW to 23-25 GW. 10 new reactors are currently under construction in the country. This was announced by Ajit Kumar Mohanty, chairman of the Indian government’s Atomic Energy Commission (AEC). “Our goal is for nuclear power to have a significant share in India’s power sector by 2047, when the country will celebrate 100 years of independence,” Mohanty said, emphasizing the country’s commitment to achieve “net zero” emissions by 2070.