A report by the World Bank said India will need to appeal to commercial bank lenders to help fund its plan to add 10 gigawatts of solar power by 2017, according to Bloomberg. As part of its $11.7 billion solar plan known as the Jawaharlal Nehru National Solar Mission (JNNSM), the country aims to increase its solar capacity six times its current rate by 2017.
"Growth in the energy sector is key for India as more than 300 million of the country's people still lack access to electricity, and industry cites energy shortages as a critical barrier to growth," the World Bank report said. "The development of solar power will help India produce clean energy and contribute to reducing emissions per unit of GDP by 20-25 percent by 2020, over 2005 levels."
India has 2,080 megawatts of installed capacity with most of the investment coming from lenders, including the World Bank's International Finance Corp. The World Bank said project leaders in JNNSM Phase II between 2013 and 2017 will have to adopt lessons from the first phase, including attracting more commercial banks and private financing to help fund the solar plan. The World Bank also said India will have to improve its manufacturing capabilities in order to use its comparative advantage to boost its installed capacity.