The US has committed $95 million to finance two clean energy initiatives in India, building on its pledge earlier this year to help the country develop 5.4GW of renewables capacity.
Through the Overseas Private Investment Corporation, the US will invest $75 million in a utility-scale solar project and $20 million to launch an energy efficiency partnership. In June, the US and India agreed to work together to mobilise $1.4 billion for clean energy investments. India has set a target to develop 175GW of renewables sources by 2022.
The $75 million solar project will be located in Telangana, in central India, and is sponsored by ReNew Power Ventures. This investment is part of a $250 million facility that will support up to 400MW of new solar projects in India, the White House said.
The US, through the OPIC, also launched the US-India Clean Energy Finance Program with a $20 commitment to leverage philanthropic capital to install energy efficient appliances in rural Indian villages. The programme is expected to unlock up to $400 million in long-term debt financing from OPIC and other private investors.
India and the US also established the Clean Energy Finance Hub to co-ordinate these efforts and look for new areas for renewable investments.