Indo-German Energy Forum Subgroup IV Meeting on Green Energy Financing and Grid Integration
The Indo-German Energy Forum (IGEF-SO) held the Subgroup IV meeting on 18 December 2024 in New Delhi, focusing on the topic of “Green Energy Financing and Grid Integration”. The discussions covered opportunities, challenges, and priorities within the scope of Indo-German Financial Cooperation.
In her welcome remarks, Ms. Aparna Bhatia, Economic Adviser at the Department of Economic Affairs (DEA) and Indian Co-Chair of Subgroup IV, emphasised the close partnership between India and Germany under the IGEF. Ms. Barbara Schäfer, Head of Division for South Asia, German Federal Ministry for Economic Cooperation and Development (BMZ) and German Co-Chair, reaffirmed Germany’s commitment to supporting Green Energy Corridors (GEC) projects and strengthening cooperation in green hydrogen.
Mr. Anirban Kundu, Co-Director, IGEF-SO, and Mr. Stefan Kliesch, Head of Energy, KfW Office Delhi, provided updates on the subgroup’s progress and upcoming activities. Discussions covered emerging financial cooperation areas such as green hydrogen, offshore wind, and repurposing coal mines/power plants, along with financing mechanisms like policy-based loans, credit guarantee facilities, equity funds, and the PtX Development Fund. KfW also shared updates on loan agreements, GEC portfolio status, and announced the 2nd Call for Expression of Interest for the PtX Development Fund on 8 January 2025.
Representatives from MNRE, the Ministry of Power, POWERGRID, NTPC, and other key stakeholders provided insights. Dr. Prasad Chaphekar, Deputy Director, MNRE, highlighted challenges in green hydrogen adoption, including offtake agreements and high international lending costs, while discussing H2Global funding and state-level efforts to mobilise CAPEX alongside MNRE funding. Mr. Tarun Singh, Scientist-E, MNRE, provided updates on GEC Phase III, noting that four states have submitted proposals for Viability Gap Funding (VGF) under the Tariff-Based Competitive Bidding (TBCB) framework.
Dr. Gaurav Mishra, Scientist-F, MNRE, emphasised the urgent need for private investment to meet India’s renewable energy targets and highlighted the India-Germany Platform for Investments in Renewable Energies Worldwide as a key tool for mobilising private capital. POWERGRID updated the forum on the Leh-Haryana transmission line project, with further discussions planned with KfW on financing options.
Mr. Rahul Pataballa, DGM, NTPC-REL, shared progress on NTPC’s 1,200-acre Hydrogen Hub in Pudimadaka, Andhra Pradesh, which will produce 2.5 million tonnes of green chemicals such as green urea, SAF, methanol, and ammonia. The hub will feature a 7 GW RE-RTC power supply, a desalination plant, and a captive port, with interest from Shipping Corporation of India and Maersk in green methanol offtake. Updates were also provided on hydrogen mobility projects in Leh and Greater Noida.
Ms. Schäfer introduced the Indo-German Platform for Investments, highlighting its role in connecting private sector investments and creating a comprehensive digital tool for the energy sector.
The meeting reaffirmed key areas of future collaboration, including green hydrogen clusters, GEC Phase III, the Leh-Haryana Transmission Line, offshore wind projects, and repurposing old coal mines for renewable energy. Innovative solar and round-the-clock renewable energy projects remain a priority, with IGEF exploring GEC financing under the TBCB framework.
The discussions reinforced the strong Indo-German partnership in advancing green energy initiatives, concluding with a shared commitment to accelerating India’s energy transition.
The presentation on SG IV meeting can be found here.
