Cooperation with India Green Energy Corridors

    India’s rapidly growing economy needs more energy. To transport this electricity from new power stations to consumers, green power lines – known as Green Energy Corridors – are being built across the country.

    India has been on a dynamic growth trajectory for years. This development has lifted many people out of poverty, but it is having a negative impact on the climate as it is driving up demand for electricity. Currently, India still generates a significant proportion of its electricity from coal which is particularly harmful to the climate.

    If India’s growth is not to be accompanied by higher emissions of greenhouse gases that harm the climate, the country must reduce its reliance on coal in favour of renewable energies. India aims to be carbon neutral by 2070 and to have half of its installed electricity generation capacity come from non-fossil fuel sources by 2030. The latter target was already achieved in 2025. The share of coal in the electricity mix is also falling.

    To ensure that this can continue, more renewable energy power stations are needed, as are larger and better electricity grids. This is because the regions that are suitable for solar and wind power generation are often located far away from the economic centres. As a result, high-capacity transmission lines and a more robust distribution network are needed.

    Transmission lines carry sustainable electricity to the parts of India where it is most urgently needed.

    To this end, India began building Green Energy Corridors several years ago. Germany is contributing to these efforts via KfW Development Bank. KfW is supporting these expansions through low-interest loans. Thousands of kilometres of new power lines have already been built in order to connect large solar power plants and wind farms to the national electricity grid. Modern grid technology is also increasingly being installed in order to balance fluctuations in electricity generation from renewable sources more effectively.

    Power lines of this kind present a number of challenges. For example, while the shortest route for a power line is generally the most cost-effective, German development cooperation actors and their partners are trying to minimise the impact on people and the environment as far as possible. Studies were therefore carried out to assess potential negative impacts, with a view to determining the route that would cause the least disruption.

    The project combines several objectives: it is accelerating India’s energy transition, contributing to climate action, boosting the economy and creating jobs.