US announces clean energy projects worth Rs 645 crore in India

The United States (US) on Monday announced two financial projects worth $ 95 million (around Rs 645 crore) in India to bring more energy-efficient appliances to rural sector, as part of its efforts to continue the global transition to zero-and-low carbon energy sources.

The US has committed $ 70 million (around 475 crore) in Overseas Private Investment Corporation (OPIC) financing for renewable energy projects in India; and announced to launch a $ 20 million partnership this week with the philanthropic sector to bring more efficient appliances to rural Indian villages. The $ 75 million (around Rs 509 crore) OPIC financing is for a utility-scale PV project in Telangana. It is sponsored by ReNew Power Ventures.

This commitment represents the rapid mobilisation of financing under a $ 250 million (around Rs 1,697 crore) facility to support up to 400 MW of new solar power projects in India across multiple states, the White House said. Further the OPIC and Indian Government will this week formally launch a $ 20 million (around Rs 135 crore) distributed solar facility in partnership with leading philanthropies, it said. Known as US-India Clean Energy Finance program (USICEF), it will address a key financing gap in the Indian distributed solar market by funding early-stage project preparatory work, it said. USICEF is anticipated to unlock up to $ 400 million (around Rs 2,715 crore) in long-term debt financing from OPIC and private sector investors, the White House said.

According to the White House fact sheet, the Rockefeller Foundation's Smart Power for Rural Development Initiative is also announcing a new partnership with the Clean Energy Ministerial's (CEM) Global Lighting and Energy Access Partnership (Global LEAP) to accelerate the deployment and use of energy efficient off-grid devices in rural India. The US Department of State will, subject to Congressional notification, provide funding for Global LEAP to support the development and roll out of a programme to deploy energy- efficient devices such as televisions, fans, and refrigerators at selected Smart Power supported mini-grid sites, the White House said. It will also develop a strategy for a programme-wide scale-up targeted to reduce energy costs for some of the poorest people in India.

"When deployed it is expected to reduce energy consumption by over 50 % for rural households, increase revenue for mini-grid operators by over 300 % per household, and generate rural employment for people involved in distribution and supply chain management of the devices," it said. Noting that the former US President Barack Obama's leadership has catalyzed a global transition towards a clean energy economy, the White House said from 2010-2015 alone, the US has invested in more than $ 11 billion in international clean energy finance. At the same time, the US has made research and development a top priority. Key achievements include establishing Mission Innovation (MI), with the leaders of 19 countries, to accelerate innovation by doubling public investment in clean energy research and development to $ 30 billion (around Rs 2,03,699 crore) over five years.