India agrees up to USD 1bn in US clean energy funding

Oct 1, 2014 - The governments of India and the US have agreed on the provision of up to USD 1 billion (EUR 794m) in financing that will help the South Asian country in its attempts to become a low-carbon and climate-resilient energy economy.

The Indian Renewable Energy Development Agency (IREDA) and the Export-Import Bank of the US have signed a memorandum of understanding (MoU) on the matter during prime minister Narendra Modi’s visit with US president Barack Obama, according to a Tuesday press release. The pact also envisages increasing US renewable energy exports to India.

The leaders also shook hands on a new strategic alliance between the two countries on energy security, clean energy and climate change. The agreed initiatives include a partnership that will aim to promote efficient urban energy infrastructure and a scheme to boost renewable energy integration into the national power grid. Also, a new forum will be created to promote investment and trade in clean energy projects.

Earlier today it was announced that the Indian government has entered into a MoU with a number of local firms for the development of the country’s first demonstration offshore wind project totalling 100 MW.

(USD 1.0 = EUR 0.793)

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