A solar engineer checks a solar-powered street lamp.

Priority area Renewable energy and energy efficiency Impact on the global climate

Energy consumption in India is increasing inexorably, yet most of the existing power generating plants are obsolete and inefficient. Moreover, they emit excessive amounts of greenhouse gases and other pollutants.

Power supply in India – in particular in rural areas – falls well short of demand. This shortage is also severely hampering economic development. Yet India is already causing the third-highest level of carbon dioxide emissions in the world, exceeded only by China and the USA. The country's economic and environmental policies therefore have a direct impact on the world's climate.

Encouraging the installation of solar plants

Germany is supporting India in making its power supply more technically and economically efficient, and more socially and environmentally sustainable. The focus of development cooperation, therefore, is on promoting renewable energies.

In October 2015, Germany and India agreed to launch the "Indo-German Solar Partnership". Funding for the programme is one billion euros over a five-year period. The main activities to be supported under the partnership are increasing the use of rooftop solar kits, which are not yet widely found in India, and promoting off-grid electrification in rural areas by means of solar installations and solar parks. In addition, the necessary training is to be provided so that local businesses are able to find qualified staff to assist with importing, selling, installing and maintaining solar technology.

Green energy corridors

Over the last few years, India has significantly stepped up the generation of electricity from renewable energy sources. However, feeding in this "renewable" electricity into India's overstretched national grid has now hit a choke point. A sizeable loan provided by the Federal Republic of Germany is helping India to upgrade its network of transmission lines ("green energy corridors"), in order to improve the feed-in of power generated from renewable energy sources (such as solar, wind and hydropower) into the national grid.

Further important goals of development cooperation in this area are to improve energy generating efficiency, reduce power transmission losses, and reduce power consumption by businesses and private households.