IREDA launches new scheme to promote green mobility sector
In order to promote and increase the use of renewable energy in the mobility sector, IREDA has launched a scheme to finance new and emerging technologies.
State-run Indian Renewable Energy Development Agency (IREDA), a lender for renewable energy and energy efficiency under the Ministry of New and Renewable Energy (MNRE), has initiated a new scheme to finance new and emerging technologies aimed at promoting the increased use of renewable energy in the transportation sector.
Among the eligible technologies qualified for financing are – battery energy storage systems (BESS) and batteries, green hydrogen production projects (electrolyzers), fuel cells, electric cars and associated parts production facilities.
Moreover, waste recycling units shall also qualify under the scheme that are designed to meet the needs of the renewable energy, electric mobility, and BESS segments. In addition, IREDA will also provide financial support to EV fleet owners, operators, and charging infrastructure owners, covering the entire green mobility value chain.
As part of its effort to meet the demand for sustainable alternatives to mobility, the IREDA already finances compressed biogas (CBG) and bioethanol projects. With the new Scheme, the nation’s energy security and climate mitigation objectives will be achieved through financing the entire value chain of green mobility.
By 2030, the Government of India plans to generate 500 GW of non-fossil energy and be carbon-neutral by 2070. At the national level, electricity accounts for only 16.5% of final energy consumption. For reduction of greenhouse gas emissions (GHG) from the remainder 83.5%, additional efforts are needed.
Thus, in order to reap the benefits of large-scale integration of renewable energy into the economy beyond its limited use in power generation, investment in new and emerging technologies is necessary for its integration into the economy’s industrial and transportation sectors.
This goal can be met by developing a robust manufacturing and deployment infrastructure for battery energy storage systems, green hydrogen, biofuels, and charging infrastructures.
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