India to fund smart meter rollout and grid expansion with €140m KfW loan
The Indian state government of Madhya Pradesh is set to expand and modernise its electricity network by deploying smart meters and smart grid technologies using a €140 million ($157.5 million) secured from German bank KfW.
KfW is issuing the loan on behalf of the German Federal Ministry for Economic Cooperation and Development.
The smart meters will record consumer energy usage data in near real-time for the development of personalised energy efficiency recommendations, to ensure accurate energy billing and demand response use cases such as Time-of-Use tariffs.
Access to energy usage data is expected to help consumers make more informed decisions regarding their energy consumption.
The smart meters are expected to enable utilities to address peak loads, as well as energy transition challenges such as the fluctuating nature of renewable energy.
Data acquired from the smart meters will be used to match demand with supply or generation, a move that will enable the state to expand its renewable energy capacity integrated with the grid, once grid expansion measures are put in place using the loan.
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The aging nature of India’s power grid is challenging the connection and operation of wind and solar, hence the project will result in the installation of new infrastructure capable of accomodating more renewables capacity and reducing technical and financial losses.
The loan is expected to help Madhya Pradesh reduce greenhouse gas emissions by 110,000 tons per annum, moving India closer to its energy decarbonisation and climate action goals.
India is the world’s third-largest emitter of greenhouse gases after China and the United States.
The Indian government has set a target of increasing renewable energies to a volume of 175GW by 2022 and 450GW by 2030 to ensure energy affordability and sustainability.
The grid modernisation project is also expected to reduce energy theft, ensure fewer outages on the grid and improve customer services.
The project will also enable utilities in the state to address rapidly increasing energy demand and connect more consumers to the grid through electrification of the population living in villages.
Hille Henebry, KfW portfolio manager said: “Our project is helping the country to meet its growing electricity needs more efficiently and sustainably. This is the basis for economic development in rural regions as well.”
