The United States’ Overseas Private Investment Corporation (OPIC) has announced it will spend $880 million on renewable energy projects in India under a deal brokered by Secretary of State Hilary Clinton.
In support of the US-India Partnership to Advance Clean Energy, Energy Security and Climate Change (PACE) initiative, OPIC will spend a total of USD$600 million in the Asian region, of which $360 will channel directly to solar, wind, hydropower and biomass projects in India. OPIC says a further $520 million earmarked for finance and insurance of Indian solar power projects will flow before the end of 2011.
Under the agreement US Department of Energy (DOE) will fund a $25 million bilateral Joint Clean Energy Research and Development Centre aimed at research and development on building efficiency, solar energy and advanced biofuels.
The PACE alliance draws resources from US Department of State trade and development agencies to fund new smart-grid and solar pilot programs, and establishes funds to support the Indian business community to accelerate the deployment of renewable energy technologies. In November, the US Department of Commerce plans to embark on a trade mission to facilitate expanded trade and commercial partnerships in clean technology products.
The USA knows the rapid growth of the Indian economy has led to a boom in energy stocks. It is positioning itself to capitalise on the demand for renewable energy in India and throughout the sub-continent. The PACE deal and OPIC investment fund secures America a secure foothold in the Indian market.
Expanding these economic ties with India was a key element of Secretary Clinton’s tour.
"Well, speaking for the United States, I can tell you that we are, in fact, betting on India’s future. To promote clean energy and to seek climate change solutions, this partnership that we have launched will accelerate research and deployment of effective technology,” Mrs Clinton said in a speech on July 20 at the Anna Centenary Library in Chennai.
