September 23, 2024
The International Bank for Reconstruction and Development (IBRD) will channel the funding and focus on expanding manufacturing capacities for key technologies such as solar, wind, and battery systems
Both nations are dedicated to leveraging the clean energy transition to generate high-quality jobs, accelerate global clean energy deployment, and achieve climate goals
India and the US aim to enhance bilateral technical, financial, and policy support to expand manufacturing capacity for clean energy technologies, focusing on African partnerships
The two governments plan to collaborate with industry leaders to identify immediate investment opportunities in clean energy supply chains, including African projects
India is working closely with the United States on a significant multilateral financing initiative worth US$1 billion to develop the domestic clean energy supply chain. According to a statement released by the Prime Minister’s Office (PMO), the IBRD will facilitate the funding. This initiative enhances supply-side manufacturing capacity for crucial technology sectors, including solar, wind, battery systems, high-efficiency air conditioning and ceiling fans.
The statement emphasised that both nations are committed to capturing the benefits of the clean energy transition, which includes creating high-quality jobs, accelerating global clean energy deployment, and achieving global climate objectives.
In addition to financial support, India and the US intend to elevate and expand bilateral technical and policy backing to enhance manufacturing capacities for clean energy technologies and components. They also lay the groundwork for improved cooperation in third countries, particularly in Africa.
This announcement followed bilateral discussions between Prime Minister Narendra Modi and US President Joe Biden on the sidelines of the QUAD summit.
Both governments have pledged to collaborate with industry leaders to identify near-term investment opportunities for expanding manufacturing capacities in specific clean energy supply chain segments. They aim to work alongside the private sector on eligible opportunities and pilot projects, which may include a clean energy initiative in Africa.
The countries plan to invest in various areas, such as solar wafers and manufacturing equipment, next-generation solar cells, wind turbine nacelle components, and energy storage solutions like batteries. They also intend to build trilateral relationships with African partners committed to clean energy deployment, focusing on solar and battery storage technologies.
The statement noted that India and the United States can collaborate with African partners to pursue promising solar and electric vehicle deployment opportunities. They aim to understand the conditions for project success and develop partnerships and financial models to implement these initiatives effectively.
To anchor this effort, the US Development Finance Corporation (DFC) and the US Agency for International Development (USAID) will collaborate with the India-based International Solar Alliance to deploy solar and EV charging networks near health facilities.
Source: Mint