Battery storage to EV finance: What World Bank's $1bn for SBI will support
NEW DELHI : The World Bank plans to provide a $1 billion line of credit to the State Bank of India (SBI) to support the expansion of Battery Energy Storage Systems (BESS) and electric mobility in the country, two people aware of the development said, a move that helps India quicken its green energy transition. The proposal aims to help attract early investments and mobilize private capital and commercial financing. The amount will be disbursed in tranches.
The line of credit will help improve air quality, reduce greenhouse gas (CHG) emissions and reduce dependence on imported fossil fuel in an unpredictable global energy market. This also comes at a time when global crude oil prices have risen after tensions escalated in the Persian Gulf. Large battery storages or BESS can help India’s electricity grids, given the intermittent nature of electricity from clean energy sources such as solar and wind.
The electricity generated by solar and wind projects are stored in large batteries and supplied when required. This assumes significance given that the government’s playbook is to add 50 giga watt (GW) of green energy capacity annually to reach 500 GW renewable capacity by 2030. “The proposed project is under preparation and the details are being finalized," a World Bank spokesperson said in response to a Mint query.
Queries emailed to an SBI spokesperson on Monday evening remained unanswered till press time. According to the Central Electricity Authority (CEA), India’s apex power sector planning body, India will need 27GW of grid-scale battery energy storage systems by 2030 with four hours of storage. As part of its energy transition efforts, India is also focusing on the electrification of its economy by greening electricity,
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