Indo-German Energy Forum Subgroup IV Meeting on Green Energy Financing and Grid Integration
The Indo-German Energy Forum (IGEF-SO) held a Subgroup IV meeting on 18 December 2024 in New Delhi, focusing on the topic of “Green Energy Financing and Grid Integration”. The meeting discussed opportunities, challenges, trends and priority issues in the scope of work of Subgroup IV under the Indo-German Financial Cooperation.
In her welcome address, Ms. Aparna Bhatia, Co-Chair of Subgroup IV from the Indian side and the Economic Adviser at the Department of Economic Affairs (DEA), highlighted that IGEF symbolises close cooperation between India and Germany. Co-chair from the German side, Ms. Barbara Schäfer, Head of Division of South Asia, German Federal Ministry for Economic Cooperation and Development (BMZ) expressed Germany's interest in continued cooperation on future Green Energy Corridors (GEC) projects. She further emphasised the need to strengthen cooperation in the field of green hydrogen.
The floor was then open to Mr. Anirban Kundu, Co-Director, IGEF-SO, and Mr. Stefan Kliesch, Head of Energy, KfW Office in Delhi, who provided updates on the Subgroup's progress and upcoming activities.
The participants were updated on the progress in developing innovative areas of financial cooperation (green hydrogen, offshore wind, repurposing coal mines/power plants), financing mechanisms (policy-based loans, credit guarantee facilities, equity funds, and the PtX Development Fund), and advancements in round-the-clock and land-saving technologies.
KfW provided updates on loan agreements signed since the last Subgroup IV meeting, the current portfolio size in the energy sector in India, the status of the GEC portfolio, and the PtX Development Fund, including the announcement of the 2nd Call for Expression of Interest on 8 January, 2025.
The meeting also addressed IGEF-supported studies and study tours, presenting findings and discussing their implications for future collaboration.
Important stakeholders, including the Ministry of New and Renewable Energy (MNRE), Ministry of Power (MoP), POWERGRID, NTPC, and others, were present to share their views during the meeting.
Dr. Prasad Chaphekar, Deputy Director, MNRE provided an update on the National Green Hydrogen Mission and ongoing tenders. He highlighted key challenges like the lack of offtake agreements and high landed costs associated with international lending. He also discussed potential H2Global funding, recent MoU signing of SECI and H2Global Stiftung, and state governments' interest in anchoring green hydrogen projects by mobilising CAPEX alongside MNRE funding.
Mr. Tarun Singh, Scientist- E, GEC division, MNRE gave an update on the proposed GEC Phase III. He informed that so far, four states have submitted proposals to avail VGF (Viability gap funding) under the Tariff-Based Competitive Bidding (TBCB) framework.
Dr Gaurav Mishra, Scientist F, MNRE reiterated the need for enormous financing to achieve India's RE target and the importance of mobilising private funds. He welcomed the India-Germany Platform for Investments in Renewable Energies Worldwide and further indicated that the platform will play a key role in mobilising private capital in the RE space.
POWERGRID, one among the largest power transmission utilities in the world, provided updates on the progress of the Leh-Haryana transmission line project. Further discussions regarding loan costs will be held with KfW to explore the best way to finance the project.
Mr. Rahul Pataballa, DGM, NTPC-REL provided an update on NTPC's 1200-acre Hydrogen Hub in Pudimadaka, Andhra Pradesh, with facilities for 2.5 million tonnes of green chemicals like green urea, SAF, methanol, and ammonia. The hub will include a captive port, desalination plant with a dedicated capacity of 7 GW RE-RTC from the state to meet power requirements. Shipping Corporation of India and Maersk have shown interest in green methanol offtake. He also updated the group on the hydrogen mobility projects in Leh and Greater Noida.
Ms. Schäfer introduced the Indo-German Platform for Investments during the meeting. She indicated that along with connecting private sector investments in the RE sector, the platform will create a comprehensive digital tool for the energy sector.
The meeting reaffirmed the key areas for future cooperation, including green hydrogen clusters, GEC Phase III, the Leh-Haryana Transmission Line, offshore wind projects, and repurposing old/abandoned coal mines for RE projects. Innovative solar and round-the-clock renewable energy projects remain a priority, with IGEF exploring GEC financing under the Tariff-Based Competitive Bidding (TBCB) framework.
The meeting reinforced the ongoing commitment and cooperation between India and Germany in advancing green energy initiatives, concluding with an acknowledgement that the current and proposed activities of SG IV align with the spirit of cooperation between the two countries.
The presentation on SG IV meeting can be found here.
