Obama to Invest $2 Billion into Modi’s Renewable Energy Targets

published: 2015-01-28 16:40 | editor: | category: News

President Obama and Prime Minister Modi have jointly reasserted their clean energy partnership after the two leaders met for having climate talks. The talks ensured financial supports worthy of USD$ 2 billion for India to develop solar and wind energy.

Modi and his government have set aggressive targets of developing 100GW of solar and wind energy over the next 10 years. The targets are about to reduce the country’s dependence on nuclear and coal-fueled energy as well as to help people who have no access to electricity in remote places – the population is currently estimated to be 400 million.

To achieve the ambitious goal, Modi has already pledged a USD$100 billion investment into the solar development. The US Export-Import Bank committed to a USD$1 billion load agreement for the solar sector by signing a MoU involving a purchase deal. In the climate talks, President Obama announced to additionally provide USD$2 billion for India’s renewable energy development through the US Trade and Development Agency (USTDA).

“I’m also pleased that we agreed to a number of important steps to promote clean energy and to confront climate change. We very much support India’s ambitious goal for solar energy, and stand ready to speed this expansion with additional financing. We’re also launching new joint projects to improve air quality in Indian cities,” said President Obama in New Delhi on Sunday, reported PV Tech.

Last August, India’s energy administration decided to remove its anti-dumping duties against US-made solar products. US firms like SunEdison and First Solar therefore entered into the Indian market and have enjoyed certain success. SunEdison has established further investing programs into the market. (please see “Industry Highlights” in the Weekly Review January 12th~16th )

Ahmad Chatila, Chief Executive Officer of SunEdison who joined into the talks in New Dehli, commented, "By expanding our renewable energy development in countries like India, we are providing jobs back in America. SunEdison runs R&D, engineering, and manufacturing facilities in the US, and all of these functions feed our global projects."

According to Bloomberg New Energy Finance’s report, India has gathered USD$7.9 billion of renewable energy investment in 2014, and the firm estimated that it would be added up to USD$10 billion in 2015. The solar sector shall be the main driver of the growth.

(Photo: President Barack Obama toasts Prime Minister Modi during the Climate Talks in New Dehli. Photo Credit: Official White House, Photo by Pete Souza.)

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