KfW Investment in India

German state lender KfW’s unit investment in India is a part of German India partnership to achieve climate goals

German state lender KfW’s unit intends to invest US$1 billion on energy and infrastructure projects in India. 

The DEG unit plans to invest fully in renewable energy and also has investments in financial sectors and infrastructure projects, director of infrastructure & energy, global equity at DEG, Jochen von Frowein said.

KfW Invested US$400 Million in India 

The DEG division of KfW has invested around US$400 million in debt and equity of Indian companies, since its partnership with India, concentrating on the private sector companies.

Additionally, “Right now, we are very actively looking at commercial, industrial renewable energy investments. In (the) future, important sectors will be green hydrogen and power transmission,” Frowein said.

Germany’s Partnership to Help India to Achieve Climate Goals

In 2022, Germany committed 10 billion euros to help India in reaching its climate objectives. The magnitude of effort needed to fulfill the objectives of the United Nations' Paris Agreement and 2030 Agenda. The United Nations’ 2030 Agenda coupled with the lack of significant advancement in global climate talks, and the need for more effective means to achieve climate goals, underscore the growing significance of non-multilateral partnerships in realizing climate targets.

“India is one of the most important markets that we have as it has a very good investment environment, a lot of strong entrepreneurs and developers that we like to support,” said Jochen von Frowein, director, of infrastructure & energy, global equity at DEG.

Frowein mentioned that DEG has experienced some "successful exits" from its investments in India, but he refused to provide further information on it.

India to Target 500 GW by 2030

According to InvestIndia, as of August 2024, renewable energy sources, encompassing significant hydropower, boast a total installed capacity of 199.52 GW. By 2030, India is targeting a renewable energy installed capacity of 500 GW. 

The construction of 50 solar parks with 37.49 GW have been approved in India. The offshore wind Energy has set a target to reach a capacity of 30 GW by 2030.