Climate-friendly power supply

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India is one of the largest electricity consumers and greenhouse gas emitters in the world. Structural obstacles in energy trading and weaknesses in the distribution sector, particularly in the state distribution companies (Discoms), lead to efficiency losses and hinder the expansion of renewable energies. The aim of this measure is to contribute to a safe, more stable and more environmentally and climate-friendly electricity supply by supporting Indian reform efforts in the energy sector, particularly in the distribution sector. The project is to be implemented in co-financing with the ADB (Asian Development Bank) as a policy-based sector budget financing. The disbursement of the FC funds is linked to the fulfillment of the reform goals (policy actions) agreed in the policy matrix. The project to support Indian reform measures in the Indian electricity and distribution sector will promote a more climate-friendly electricity supply and more efficient distribution of electricity overall. The agreed reform steps create improved framework conditions for the expansion of renewable energies and their efficient feed-in into the distribution network on the one hand, and more commercially efficient management and a reduction in technical losses in the distribution sector on the other. The following output goals are specifically supported: "Reform of the Indian electricity market and regulation to facilitate the integration of renewable energies and the energy transition" (Reform Area 1), and "Improvement of the financial performance, governance and service quality of the state distribution companies" (Reform Area 2). The project thus contributes to achieving the development cooperation program goal across all indicators.