Over the last month, the US Administration has shown an interest in working to develop India’s nascent solar industry. In July, the government-owned Overseas Private Investment Corp (OPIC) earmarked over $520 million for Indian solar projects by end of year 2011, while this month sees the USTDA signing two deals worth over $1.4 million to fund feasibility studies in India’s energy sector, half of which is for solar photovoltaic projects.
Back in May of this year, the US Administration showed its interest in developing closer energy ties with India, announcing the establishment of a Joint Clean Energy Research and Development Center that will mobilize $25 million of Department of Energy funding over five years for research and development focused on transformational scientific and technological cooperation on building efficiency, solar energy and advanced biofuels.
It has now taken this commitment several steps further, after the US Department of State revealed that the US government-owned financial entity OPIC plans to invest up to $820 million in the Indian renewable energy sector by the end of 2011. OPIC recently approved a new private equity fund of approximately $350 million which will target Indian hydro, biomass, wind, and solar power projects. This follows the approval of a $300 million South Asia Clean Energy Fund by OPIC, nearly all of which will target India. OPIC expects to commit more than $520 million of financing and insurance for Indian solar projects by end of year 2011.
Meanwhile, the US Trade and Development Agency (USTDA) announced during US Secretary of State Hillary Clinton’s three-day visit to India earlier this month that it has entered into two deals worth over $1.4 million to fund feasibility studies in India’s energy sector.
Solar power in Bengal
The first deal provides USTDA funding for a $7,19,985 feasibility study to Astonfield Renewables Private Limited to prepare the design and deployment of two solar photovoltaic power projects in West Bengal (5 MW) and Karnataka (10 MW). The objective of the study is to maximise the electricity output from the two projects through site and technology confirmation and design optimisation. The second is a $6,86,447 grant to North Delhi Power Limited (NDPL) for the implementation of smart grid technology in India.
The study will develop requirements for a smart grid implementation roadmap for NDPL and address a range of improvements and investments, including integrating smart meters and automated reading into NDPL’s distribution system.
‘Feasibility study is a bit of a foundation before some of our projects can be financed by OPEC and Accent Bank,’ said USTDA director Leocadia I. Zak before the deals were signed at a round table conference on building India’s 21st century infrastructure.
India’s Minister of New and Renewable Energy, Farooq Abdullah, who met with Deputy Secretary, US Department of Energy, Daniel B. Poneman, recently suggested cooperation in the integration of solar and wind energy, small grid and policy framework and called for extending the cooperation to new areas such as small hydro power, technology transfer and storage of renewable energy. These latest deals will go some way to nurturing such a relationship.
