India, US Sign Deal to Unlock $1Billion for Clean Energy Tech Manufacturing

By siliconindia  |  Monday, 23 September 2024, 09:06:34 AM IST

India, US Sign Deal to Unlock $1Billion for Clean Energy Tech Manufacturing
India and the United States have signed an agreement to unlock $1 billion for the manufacturing of clean energy technologies in India, as well as to ensure a resilient supply chain for clean energy components, according to the Ministry of External Affairs.
“President Biden and Prime Minister Modi welcomed the U.S.-India Roadmap to Build Safe and Secure Global Clean Energy Supply Chains, which launched a new initiative to accelerate the expansion of safe and secure clean energy supply chains through U.S. and Indian manufacturing of clean energy technologies and components”, the Ministry of External Affairs said.
In a statement, the Ministry of External Affairs (MEA) explained that to kickstart this partnership, the US and India are collaborating to unlock $1 billion in new multilateral financing through the International Bank for Reconstruction and Development (IBRD). This funding will support projects aimed at boosting the development of India's domestic clean energy supply chain.
In its initial phase, the two nations would work together for multilateral financing to support projects across the clean energy value chain for renewable energy, energy storage, power grid and transmission technologies, high-efficiency cooling systems, zero-emission vehicles, and other emerging clean technologies.
The two leaders highlighted the US International Development Finance Corporation (DFC)’ has to date extended a $250 million loan to Tata Power Solar to construct a solar cell manufacturing facility and a $500 million loan to First Solar to construct and operate a solar module manufacturing facility in India.
Prime Minister Modi and US President Biden also announced a new Memorandum of Cooperation between the US Agency for International Development and the International Solar Alliance. The agreement aims to promote more resilient and sustainable power systems that harness a variety of renewable energy sources.
Meanwhile, the Leaders welcomed collaboration on a new National Center for Hydrogen Safety in India and affirmed their intent to utilise the new Renewable Energy Technology Action Platform (RETAP) to enhance collaboration on clean energy manufacturing and global supply chains, including through public-private task forces on hydrogen and energy storage.
Additionally, they commended the collaboration between the two nations under the Strategic Clean Energy Partnership (SCEP), which was most recently held on September 16, 2024, in Washington, DC. This partnership aims to enhance energy security, foster clean energy innovation, tackle climate change, and generate employment opportunities through capacity building and collaboration between industry and research and development, according to the White House.

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