Clean energy has emerged as a focal point of international cooperation between India and the United States, following the signing of a groundbreaking agreement to mobilize $1 billion for the manufacturing of clean energy technologies in India. Announced by the Ministry of External Affairs on September 22, this initiative aims to establish a robust and resilient supply chain for clean energy components.
Both President Biden and Prime Minister Modi have expressed their support for the U.S.-India Roadmap to Build Safe and Secure Global Clean Energy Supply Chains, which marks the beginning of a collaborative effort to enhance the production and distribution of safe and secure clean energy technologies through joint manufacturing endeavors.
The Ministry outlined that this partnership seeks to unlock $1 billion in new multilateral financing via the International Bank for Reconstruction and Development (IBRD). This funding is intended for projects that catalyze the development of India’s domestic clean energy supply chain. In the initial phase of this collaboration, the two nations will focus on securing multilateral financing to support various projects spanning the clean energy value chain.
These projects will encompass renewable energy, energy storage solutions, advancements in power grid and transmission technologies, high-efficiency cooling systems, zero-emission vehicles, and other innovative clean technologies. Highlighting the progress made, the leaders noted that the U.S. International Development Finance Corporation (DFC) has already extended a $250 million loan to Tata Power Solar, facilitating the construction of a solar cell manufacturing facility.
Additionally, a $500 million loan has been granted to First Solar for the establishment and operation of a solar module manufacturing plant in India. Further enhancing their collaboration, Prime Minister Modi and President Biden unveiled a new Memorandum of Cooperation between the U.S. Agency for International Development and the International Solar Alliance. This memorandum aims to foster more responsive and sustainable power systems that effectively utilize diverse renewable energy sources.
The leaders also underscored the establishment of a National Center for Hydrogen Safety in India and expressed their commitment to leveraging the newly created Renewable Energy Technology Action Platform (RETAP). This platform will enhance collaboration on clean energy manufacturing and global supply chains, including the formation of public-private task forces focused on hydrogen and energy storage.
Moreover, the leaders celebrated the ongoing partnership under the Strategic Clean Energy Partnership (SCEP), which was most recently convened on September 16, 2024, in Washington, D.C. This partnership aims to strengthen energy security, drive clean energy innovation, combat climate change, and create employment opportunities through capacity building and industry collaboration in research and development. The White House has highlighted these collaborative efforts as pivotal to advancing clean energy goals for both nations.
