Germany promises Rs 7,300 crore for India's solar projects

New Delhi: Giving a thrust on clean energy, Germany Monday pledged about one billion euros (Rs 7,300 crore) assistance for India's solar projects as part of the bilateral cooperation in energy sector.

The joint statement issued after the meeting of Prime Minister Narendra Modi and German Chancellor Angela Merkel said both the countries will continue to intensify their cooperation in developing climate-friendly and sustainable solutions for India's expanding energy needs.

The implementation of Green Energy Corridors Partnership, with an overall German commitment of 1.15 billion euros in the last two years, is progressing well, it said.

"Both countries welcomed the MoU on an Indo-German solar energy partnership based on concessional loans in the range of one billion euros over the next 5 years," the statement said.

India and Germany recognise that renewable energy and the efficient use of energy are most effective approaches to mitigate greenhouse gas emissions in both the countries, it added.

It further said that Germany welcomes India's intention to transform its energy sector by increasing the share of renewable energy, particularly solar, in electricity generation, consistent with its goal of 175 gigawatts of renewable energy by 2022.

The two sides expressed their readiness to work together to reach an ambitious and universal climate agreement under the Convention, it said.

"They reaffirm that the protocol, another legal instrument or agreed outcome with legal force under the Convention applicable to all parties shall address in a balanced manner, inter alia, mitigation, adaptation, finance, technology development and transfer, and capacity-building, and transparency of action and support," the statement said.

India and Germany also recognise that science, technology and innovation play a crucial role for the development of affordable, accessible and adaptable solutions in the areas of low carbon development and renewable energy generation, it added.

The statement further said that the Indo-German Climate and Renewables Alliance shall intensify cooperation on climate and energy technology issues, including within the already existing fora established for this purpose.

"It shall foster stronger integration of all actors concerned with bilateral cooperation on climate and energy technology issues, and for this purpose will encompass progressive public and private sector entities from both countries," it added.

Both countries, it said, will intensify their ongoing cooperation on climate and renewables technology under the new Indo-German Climate and Renewables Alliance, including on next generation solar technology, renewable energy storage, super-efficient appliances and buildings, energy-efficient rail and water infrastructure and off shore wind.

Both countries affirm that several already established bilateral dialogue structures, such as the Indo-German Energy Forum and the Indo-German High-Technology Partnership Group are already doing important work for the transition to low-carbon economies. 

The joint statement said lessons learnt and advances gained in the ongoing efforts of bilateral Indo-German cooperation, in particular the Indo-German Solar Energy Partnership, the Green Energy Corridors, and other bilateral projects concerning climate and solar technology will also be taken into account and built upon.

It said Prime Minister Modi emphasised India's ongoing efforts to create a market environment that will promote trade and investment in climate technology.

"Germany is prepared to further support India in its efforts to deploy renewable, in particular solar, energy technologies and to create attractive framework conditions," it added.

Further, it said that both the leaders agreed that state and city level entities should be supported to harness new technologies, policies, financing mechanisms, and economic incentives to reduce emissions.

"India and Germany will work together to develop and implement solutions that strengthen climate friendly urban development, including, inter alia, through initiatives in energy transition in cities, climate friendly urban mobility, energy efficiency in the housing sector, energy efficiency in urban water supply as well as recycling and waste management in major Indian cities," it said.

The bilateral trade between the countries stood at USD 20.32 billion in 2014-15. India has received USD 8.19 billion foreign direct investment from the European country during April 2000 and June 2015.

Germany accounts for about 3 percent of the country's total FDI during that period.