Government of India and the Overseas Private Investment Corporation (OPIC), the
U.S. government’s development finance institution, has launched the US-India
Clean Energy Finance (USICEF) Facility Initiative with $20 million (~Rs.1.36 billion). The USICEF will initiate the flow of up
to $400 million (~Rs.27.1 billion) in public and private financing for
renewable power generation to benefit up to 1 million households by 2020. Developers of
mini-grid, distributed rooftop, and off-grid solar projects, as well as small-scale
grid-connected solar projects will benefit from this initiative.
The USICEF is a first step towards the fulfillment of a
renewable energy partnership between the U.S. and India. United States and India inked a $1 billion (~Rs.67.9
billion) pact to bolster the partnership between the two countries to help
India achieve its goal of installing 175 GW of renewable energy by 2022, on June 07, 2016. The William and Flora Hewlett Foundation, Good Energies
Foundation, the John D. and Catherine T. MacArthur Foundation, and the David
and Lucille Packard Foundation have committed funding to USICEF. The Climate
Policy Initiative (CPI) in Delhi will oversee the initiative.
of intent was signed and exchanged between the Ministry of New and Renewable
Energy (MNRE) and OPIC in presence of Mr. Piyush Goyal, Minister of Power,
stated a Government of India release. “Our analysis has shown huge potential for
renewable energy companies to scale-up in India, but many lack much-needed debt
capital. We are pleased to be part of this initiative that will help overcome
this barrier, help this industry achieve scale, and help ensure India stays on
track to realize its clean energy ambitions,” said Dr. Gireesh Shrimali,
Director of CPI India.
Mercom had reported on $74 million (~Rs.5 billion) commitment by OPIC to set
up a 100 MW solar project in Telangana. The USICEF will lead to additional project
financing for solar developers in India.