India and US Collaborate to Unlock USD 1 Bn for Clean Energy Supply Chains
India and the US have announced an ambitious plan to unlock USD 1 billion in new multilateral finance through the International Bank for Reconstruction and Development (IBRD) to enhance clean energy supply chains, focusing on solar, wind, and battery manufacturing, while also strengthening cooperation with African nations.
September 22, 2024. By EI News Network
This collaboration is part of a broader effort to deepen the clean energy cooperation between the two countries, which began with various clean energy initiatives announced during Indian Prime Minister Modi's 2023 visit to the US. The funding is expected to accelerate the deployment of clean energy technologies, create high-quality jobs, and contribute to achieving global climate goals. The collaboration aims to build complementary US.-India clean energy manufacturing capacity while also preparing for enhanced cooperation in other regions, particularly Africa.
The USD 1 billion funding would support the supply-side expansion of key technology sectors, with a focus on solar wafers and wafer manufacturing equipment and next generation solar cells, wind turbine nacelles, battery storage components, battery packs for 2- and 3-wheel electric vehicles (EVs), zero-emission e-bus and truck components and power transmission systems. Over time, the US and India intend to unlock additional financing using public and private sector financial tools to support the rapid demand for flexible climate finance solutions.
As part of the partnership, both countries plan to collaborate with various stakeholders, including government agencies, civil society, private sector partners, philanthropies, and multilateral development banks, to identify pilot projects across the clean energy value chain. These projects will contribute to supply chain diversification and expansion in key sectors like solar energy, wind power, energy storage, and electric vehicles (EVs).
The partnership is also expected to foster stronger trilateral cooperation with African nations that have committed to clean energy deployment, particularly in solar and battery storage. The US and India will work with African partners to identify solar and EV deployment opportunities, focusing on creating the necessary conditions for project success. This initiative aims to facilitate public-private collaborations and expand partnerships with local manufacturers in Africa.
Furthermore, both nations are committed to consulting on policies that will boost demand certainty for locally manufactured clean energy technologies. The US. will leverage laws like the Bipartisan Infrastructure Law and the Inflation Reduction Act, while India will focus on its Production Linked Incentive Schemes, which have already allocated over USD 4.5 billion to support clean energy manufacturing. Additional policies are expected to emerge to protect and expand these investments amidst global market dynamics and ensure the availability of crucial resources such as input materials, technology, and finance.
This roadmap for clean energy cooperation between the U.S. and India is designed to drive initial collaborations on critical projects while establishing long-term goals and milestones for the partnership.
please contact: contact@energetica-india.net.
Gaurav Dolwani
CEO
From Scrap to Sustainability: LICO Materials’ Circular Economy Approach
Gaurav Kumar
Head of Supply Chain and Manufacturing
Euler Motors Bridges Cost Gap Between EVs and ICE Vehicles with Localization
Shveta Arya
India Region Leader
Powering India’s Mobility Future: Cummins Showcases Advanced Power Solutions at Bharat Mobility
Samkit Shah
Co-Founder
Jitendra EV Leading Hybrid EV Revolution with Hydrix
Muthu Subramanian
MD & General Manager
From Charging to Swapping: How Yuma Energy is Changing EV Refueling