Green mobility: IREDA launches scheme to finance battery storage, green hydrogen and fuel cell technologies

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The Indian Renewable Energy Development Agency (IREDA), State-controlled renewable energy and energy efficiency lender under the Ministry of New and Renewable Energy, has launched a scheme to finance new and emerging technologies that promote and increase the usage of renewable energy in the transport sector. Under the scheme, it shall also provide finance for EV fleet owners/operators and charging infrastructure owners—thus financing the entire value chain of green mobility.

Technologies eligible for financing include “battery energy storage systems (BESS) and batteries, projects involving production of green hydrogen (electrolyzers), fuel cells, manufacturing/ assembling plant of electric vehicles and associated components, and waste recycling units to meet the demands of the renewable energy sector, electric mobility and BESS segments.”

IREDA is already financing compressed biogas (CBG) and bioethanol production projects to meet the demand for sustainable alternatives towards mobility. The new Scheme further extends its mandate for financing the entire value chain of green mobility as accelerating energy transitions away from carbon-based fuel sources is key to achieving climate mitigation promises and energy security objectives for the nation. 

Recently, the Government of India set a target of the non-fossil energy capacity of 500 GW by 2030 and Net-Zero by the year 2070. Electricity comprises only around 16.5% of the final energy consumption at the national level and additional efforts are required to reduce greenhouse gasses (GHG) emitted by the remaining 83.5% energy sector. Accordingly, for large-scale integration of renewable energy and increasing its usage in the economy beyond scope of meeting power sector requirements only, there is a need for constant focus and investments in new and emerging technologies to integrate renewable energy usage in the industry and transport sector. 

Development of robust manufacturing and deployment infrastructure for battery energy storage systems, green hydrogen, biofuel, green mobility, and charging infrastructure shall play a major role to meet this goal. 

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