Kerala, Karnataka benefit from UNEP solar power initiative

Thursday, 06 March 2003, 20:30 IST
Printer Print Email Email
NEW DELHI: A $7.6 million initiative by the United Nations Environment Programme (UNEP) will enable 18,000 households in Karnataka and Kerala access solar energy to light their homes. The money will be channelled through the Syndicate Bank and the Canara Bank, to offer clean electricity from solar power by reducing the cost of photovoltaic solar home systems. "In effect, Indian households will be able to purchase systems at an interest rate of approximately five percent compared to the normal consumer lending rates of 11-12 per cent. The UNEP programme is made possible with support from the United Nations Foundation (UNF) and Shell Foundation," according to a statement from UNEP on Wednesday. "This initiative helps meet both environmental and development objectives by overcoming a major barrier to the increasing the use of renewable energy - access to finance," said UNEP Executive Director Klaus Toepfer. By offsetting the high initial cost, the new initiative is expected to remove a major barrier in harnessing sunlight to get cheaper, reliable and cleaner power for households, said UNEP. The UNEP partnership will allow both banks to offer new loan products for the growing renewable energy sector through an extensive and established network of rural branches in the states of Karnataka and Kerala. By combining two banks and a number of UNEP-qualified solar home system vendors, UNF President Tim Wirth said the programme is a "market-driven approach designed to stimulate competition among vendors and ensure quality products, competitive pricing and reliable after-sales service."
Source: IANS
siliconindia