The United States of America and India have signed on $1 billion worth renewable energy initiatives on the recent visit of Indian Prime Minister Narendra Modi to the US. An official statement from the White House on June 7, 2016 stated that the US is announcing 5.4 GW of new commitments from US renewable companies that are investing in India.
While 8minutenergy Renewables will continue to develop 4 GW of solar PV projects in India, SunLink Corporation will add 1.4 GW of capacity in partnership with domestic Indian companies.
The two countries announced the creation of a $20 million US-India Clean Energy Finance Task Force (USICEF) initiative for project preparation support. Through this both countries are expecting to mobilize $400 million from the Overseas Private Investment Corporation (OPIC) and other investors to provide clean and renewable electricity to up to 1 million homes by 2020. This will include standardization of a model power purchase agreement (PPA), optimization of a payment security mechanism for delayed payments under PPAs and create a warehouse facility for small renewable projects for an asset backed green bond issuance.
The two countries also announced creation of a $40 million US-India Catalytic Solar Finance Program under which finance will be provided to smaller-scale renewable energy investments, particularly in poorer, rural villages that are not connected to the grid as yet.
It was decided to establish the US-India Clean Energy Hub as the coordinating mechanism to increase renewable energy investment in India.
Under the Greening the Grid Initiative, the two governments signed a $18 million contract to implement renewable integration strategies, a $4.7 million initiative to pilot new technology to balance power grids, two partnerships between US and Indian electricity regulators and grid operators, and a first-in-class national study of strategies to transform India's grid.
Under the US-India Joint Clean Energy Research and Development Center (PACE-R), which is a $100 million program funded by the US and Indian governments and private sector, both sides announced a $30 million public-private research effort in the field of smart grids and energy storage.
Both nations will launch the third initiative of the International Solar Alliance (ISA), which will focus on off-grid solar for energy access. The initiative will be launched at the Founding Conference of ISA in September 2016 in India. A joint statement by the nations stated, "The United States also remains committed, with other developed countries, to the goal of jointly mobilizing $100 billion per year by 2020 to address the needs of developing countries in the context of meaningful mitigation and adaptation action."