India, US working on $1 bn multilateral financing for clean energy supply chain

New Delhi: India is working with the US on a multilateral financing worth $1 billion to develop domestic clean-energy supply chain.

The funding would be done through the International Bank for Reconstruction and Development (IBRD), according to a statement from the prime minister's office (PMO) on Sunday. It would support supply-side manufacturing capacity expansion for key technology verticals, focusing on solar, wind, battery, energy grid systems, and high-efficiency air conditioner and ceiling fans, it said.

The US and India are committed to working together to capture the benefits of the “clean energy transition, including the creation of high-quality jobs for our populations, acceleration of clean energy deployment globally, and achievement of global climate goals,” the statement said.

The countries intend to elevate and expand bilateral technical, financial, and policy support to expand complementary U.S. and Indian manufacturing capacity for clean energy technologies and components and lay the groundwork for enhanced cooperation in third countries, with a focus on partnerships in Africa, it said.

Also Read: Power Grid may benefit from higher investments in renewable energy

The statement came after bilateral talks between prime minister Narendra Modi and the US president Joe Biden on the sidelines of the QUAD summit.

Expanding manufacturing capacity

Both the governments also pledged to work with industry leaders on identifying near-term investment opportunities to expand manufacturing capacity for specific clean energy supply chain segments, and collaborate with the private sector on eligible opportunities and pilot projects, including a clean-energy a project in Africa.

Both the countries will invest in solar wafers and its manufacturing equipment, next generation solar cells, wind turbine nacelle components, power transmission line components, energy storage components including batteries, among others.

Others the two countries pledged to work on include building trilateral relationships with African partners that have stated political commitments to clean energy deployment, and focusing on solar and battery storage opportunities technologies.

Also Read: India’s renewable energy target may prove elusive without course correction

“India and the United States can work multilaterally with African partners to pursue high-potential solar and EV deployment opportunities, understand the conditions required for project success, detail the partnerships and financial model for project success, and implement the project,” the statement said. The US intends to collaborate with Indian companies to explore investment opportunities and facilitate public-private matchmaking expand partnerships with local African manufacturers, it said.

DFC and the U.S. Agency for International Development are anchoring this effort by collaborating with India-based International Solar Alliance to deploy solar and EV charging networks near health facilities, it said.