Energy is one of the three areas of Indo-German development cooperation that the two governments explicitly agreed on in 2008 – although it builds on a long tradition of cooperation.

Currently, almost half of India's population does not have access to electricity. India wants to increase its power generation by 60,000 MW to improve access. With economic growth, the demand for electricity is rising. Today, higher economic growth in India still means higher energy consumption. Development cooperation tries to decouple this link. At the same time, our common aim is to protect the climate by increasing energy efficiency and developing sources of renewable energy. Indo-German development cooperation is also active in energy sector reforms.

One of the most pressing needs in the Indian energy system is the extension of the electricity grids. This is particularly true with respect to the increase in renewable energy generation capacities. Comparable to Germany, grids need to be transformed and expanded to be able to cope with intermittent electricity feed-in from wind and solar power plants.