India, US to 'unlock' $1 billion to catalyse India's clean energy supply chain

WASHINGTON:

India and the US on Saturday announced the launch of an initiative to "elevate and expand" cooperation in support of clean energy supply chains and extend this partnership to third countries, with a focus on Africa.

 

To that end, the White House said that the two countries are working to "unlock" $1 billion to catalyse India's domestic clean energy supply chain buildout.

 

The announcement came in a memo released by the White House after the meeting between President Joe Biden and Prime Minister Narendra Modi on Saturday.

 

Titled, "Roadmap For US- India Initiative to Build Safe and Secure Global Clean Energy Supply Chains", the paper said that this funding could 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 fan supply chains. The funding would grow over time.

 

The two sides also "pledged" to work together with industry leaders, one, on "identifying near-term investment opportunities to expand manufacturing capacity for specific clean energy supply chain segments, with initial focuses on the following clean energy components", the White House paper said.

 

Two, collaborate with the private sector to "scope eligible opportunities in the above supply chain segments and support an initial package of pilot projects, ideally including one project focused on clean energy deployment to Africa".

 

Three, build "trilateral relationships with African partners that have stated political commitments to clean energy deployment, focusing on solar and battery storage opportunities".

 

Four, and finally, collaborate with each other and industry to "consult on policies that will strengthen demand certainty for locally manufactured clean technologies".

 

This new initiative builds on ongoing cooperation between the two sides on clean energy, including initiatives launched during Prime Minister Modi's visit to the US in 2023, the Strategic Clean Energy Partnership led by the US Department of Energy and Government of India ministries, technical assistance provided by US laboratories, and novel financial platforms such as the Payment Security Mechanism established to support the rapid deployment of electric buses in India.

 

This roadmap is to serve as a short-term mechanism to drive "initial cooperation on projects, to help inform a long-term roadmap including working together to establish a cadence of meetings and milestones of this partnership".

 


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