Business Wire India

Renewable energy project supported under JICA’s credit line to IREDA

As India is 3^rd largest energy consumer in the world behind China and U.S. and holds nearly 6% of world energy consumption according to BP Statistical Review of World Energy 2019, India is one of the key countries for improvement of world energy conservation. As the country celebrates the National Energy Conservation Day on December 14, the government of India makes a conscious effort to conserve energy and move to renewable sources such as the aim to introduce 175 GW by FY2022 under the Ministry of New and Renewable Energy.

Japan International Cooperation Agency (JICA) has long cooperation with the Government of India in energy efficiency and renewable energy sector towards sustainable development.

Speaking on the occasion of National Energy Conservation Day, Mr. Katsuo Matsumoto, Chief Representative, JICA India Office, said, “India’s energy consumption is growing and energy derived from coal is 57% of the country’s energy mix. The effort to shift from fossil fuel to renewable energy by a large country like India has enormous impact to the world. As India celebrates the National Energy Conservation Day, JICA reaffirms its commitment to wholeheartedly support the country's effort to diversify its energy mix and realize economic growth in a sustainable manner.”

JICA has supported install 9.3 GW energy capacity in India with 1.0 GW in the renewable sector. JICA’s support on projects for modernization of transmission and distribution lines has also promoted energy efficiency in the country. JICA has supported transmission and distribution projects across Haryana, Madhya Pradesh, Maharashtra, West Bengal, Meghalaya, Odisha and Uttarakhand.

In addition, JICA provided Japanese ODA loans of 60 billion Yen (approximately INR. 4,000 Crore) to the Indian Renewable Energy Development Agency (IREDA) in total of 2011 and 2014 under which over 36 sub-projects across the wind, solar and small hydro energy sectors has been supported.

Further, in the context of energy efficiency, JICA provided Japanese ODA loans of 90 billion Yen (approximately INR. 6,000 Crore) to Small Industries Development Bank of India (SIDBI) in total of 2008, 2011 and 2014 which supported more than 5,000 sub-projects to improve the energy efficiency of MSMEs in India.

This support by JICA has the potential to reap rich dividends on a large scale, enabling a sizeable chunk of India’s industrial base to switch to sustainable sources of energy. According to Small & Medium Business Development Chamber of India, MSMEs currently contribute 45% of India’s industrial output and 40% of total exports. SMEs form 95% of the total industrial units in the country.

MSMEs consume approximately 25% of energy consumed by the entire manufacturing sector in India. However, MSMEs are generally slow in adopting energy saving measures and consume energy in an inefficient manner compared to large companies. This is mainly due to lack of access to medium-long term financial resources and technical knowledge. It is JICA’s aim to address these need gaps through targeted interventions.About JICA

Established, by a specific law, as an incorporated administrative institution under the Government of Japan, the Japan International Cooperation Agency (JICA) aims to contribute to the promotion of international cooperation, as a sole Japanese governmental agency in charge of ODA implementation. JICA is the world's largest bilateral donor agency. JICA works as a bridge between Japan and emerging countries, and provides assistance in forms of loan, grant and technical cooperation so that the emerging countries can strengthen their capabilities.

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