Press Release, September 15, 2024 | Development Minister Svenja Schulze will today embark on a three-day trip to Gujarat in western India, where she will represent Germany as a guest country at one of the largest investor conferences on renewable energy. Around 25,000 participants are expected. Schulze will be accompanied by a business delegation of around 20 representatives from the renewable energy sector. As part of the conference, Schulze will discuss close cooperation with the Indian government in expanding renewable energy. India is a key country in the global energy transition and wants to become the world’s second-largest solar producer.
Minister of Development Schulze: “The German-Indian cooperation on the energy transition is a success story for everyone involved. The world’s most populous country is on the verge of a renewable energy boom and wants to become the second-largest producer of solar power systems after China. This is primarily good for India itself. It can provide renewable energy at very low prices, create millions of new jobs, and contribute to cleaner air and a more stable climate. Germany is also benefiting from this boom. German companies are investing in India, associations are working on skilled workforce exchanges, and German importers are finally securing an alternative to solar power systems from China in the medium term. Ultimately, if the energy transition succeeds in India, the whole world wins. Climate change can only be stopped if more and more of India’s 1.4 billion people get their electricity from wind and sun.”
Germany and India share a strategic partnership for green and sustainable development, which was agreed upon by Prime Minister Narendra Modi and Chancellor Olaf Scholz in 2022. As part of this cooperation, there is also the idea of a renewable energy investment conference RE-INVEST. (External link) Germany has been chosen as the guest of honor. Hosted by the Indian Ministry of Renewable Energy, “RE-INVEST” is a trade fair and a professional conference with high-level participation from business and politics. Prime Minister Modi is scheduled to open the meeting on Monday morning. Around 25,000 people, mainly business representatives, are expected to attend. The German business delegation includes 20 German SMEs and renewable energy sector associations.
Minister Schulze met with Shri Pralhad Joshi, Minister of State for Renewable Energy of India, at the meeting.India-Germany Platform for Global Renewable Energy Investments” Start. Their goal is to bring together German and Indian companies in the renewable energy sector and generate investments in the global energy transition. Today, renewable energy capacity in India and Germany is at a similar level. India is expected to increase its expansion significantly in the future. The world’s largest solar power plant is being built in Gujarat. This is one reason why German companies are increasingly looking at India as a hub for Asian investments. More than 2,000 German companies are already based in India. Around 200 German companies in the energy sector have trade relations with India and 50 have established production facilities or subsidiaries in India.
India’s commitment is also relevant to Germany’s energy security. China wants to become the world’s second largest producer of solar power systems and is positioning itself in global competition with China. Currently, Germany is the only country that can service the entire solar supply chain with China, so India is looking for closer cooperation. Germany and the world benefit when there are more suppliers in the market and energy supply is not dependent on individual countries.
The German-Indian sustainability cooperation involves projects worth around €1 billion per year, more than 90 percent of which are provided in the form of loans. KfW The development bank takes the capital market and India pays the interest. The exact sectors in which India will invest will be agreed upon in government negotiations held after the meeting. India itself is keen on climate protection as it suffers from heatwaves exceeding 50 degrees Celsius.
Schultz: “The German Federal Ministry for Development has been supporting the development of the renewable energy market in India for many years and has ensured better investment conditions. German companies have benefited from this good reputation and these investments and continue to do so. This also shows the great interest of German companies in this conference.”
