President Obama sought to Create Clean "Power India" Initiative

28/1/2015

Prior to President Obama's recently concluded trip to India for Republic Day, environmental groups and solar companies -- including Sierra Club, Schneider Electric, OMC Power, d.light, SunFunder, and Simpa Networks -- sent the President a letter calling for a “Power India” initiative to provide U.S. support for India’s ambitious solar goals. This would be a an important building block of U.S.-India collaboration on climate disruption and could help create much needed international momentum on both short-term climate action and on a post-2020 climate agreement.

A “Power India” initiative would coordinate bilateral support from agencies such as the Overseas Private Investment Corporation (OPIC), U.S. Export-Import Bank, and USAID, with the goal of unlocking much needed support for clean energy projects and catalyzing the expansion of beyond-the-grid solar markets to help alleviate energy poverty. The call from environmental groups and solar companies asks for the U.S. government to draw lessons learned from the renewable energy aspects of “Power Africa” and to replicate its “Beyond the Grid” sub-initiative in India.

Approximately 400 million people in India lack access to electricity. Prime Minister Modi has set a goal of using solar to ensure that all households have at least one light bulb by 2019. Prime Minister Modi has also indicated goals of attracting $100 billion in investment in India's solar industry by 2022 and installing 100,000 megawatts of solar in the same time period. Through financial and technical support, the U.S. government can help India achieve these goals. It has been reported that the two leaders do intend to discuss India’s solar ambitions during President Obama’s visit, though the specific details around the extent of U.S. support remain unknown.

Source - World Resources Institute

Large investments in India’s solar sector signal that it is a good time for solar investment in India. Last week, SunEdison announced plans for a $4 billion solar equipment factory in India with local conglomerate Adani Enterprises, which will have an annual production capacity of 7.5 gigawatts. SunEdison also announced plans with Omnigrid Micropower Company, an India-based company, to provide off-grid solar projects in 5,000 villages in the currently, amounting to a cumulative total of 250 megawatts of power. It is likely that U.S. banks and companies will continue to seize the opportunity.

Expanding clean energy is an important component of addressing climate disruption and energy poverty, ensuring that the future is powered by clean energy that is accessible to all.

3 Comments

Johnson

28/1/2015 04:36:35 pm

There is a lot of ground to cover and that too within short time...

1. The Solar trade dispute is dropped to favor India or US?

2. India doesnt want to increase duties on Chinese dumping cheap solar panels in India. Failure to do this is leading to closure of even existing solar panel making companies.

3. I How can US companies like SunEdison survive in such a scenario?

4. Installations will be by large companies (like Suzlon, Tata, Reliance, etc) or will it be decentralized and adopted & run by the local community/individuals? Large companies making a monopoly of power distribution will only continue the existing problems (expensive electricity, bypassing the poor) while replacing oil with clean energy. Companies stand to gain huge profits much much more than existing profits as there will no need for "fuel purchase".

Only time will answer these questions...

In spite of sending rockets to the space its surprising that we are still dependent on other countries even for low-tech stuff like solar panels and renewable energy...

And yes... in the background of these "renewal-energy-power-push" people are still awaiting the fate of 200,000 Electric Rickshaws in Delhi.

I wonder if there is some confusion about renewable energy.... and its usage by the common man...

Johnson

29/1/2015 12:52:21 pm

The $4 Billion article clearly mentions "It (SunEdison) also wants to use solar panels that won’t be subject to harsh tariffs or other sanctions, which have been imposed on Chinese-made solar products sold into the U.S. and Europe."

US & Europe is putting harsh traiffs on Chinese panels but at the same time they dont want India to put any tariffs on US dumping into India. (Actually dumping is a relative term - any country with greater industrial, electrical energy & infrastructure strength can produce products cheaper- China is the leader in this). It has always been US & European policy to protect its local industries and to levy heavy traiffs & rules to countries that are able to produce stuff at prices lower than local market rates. But at the same time expect other countries not to do this. This was the standoff with India which they seem to have somehow arm-twisted to US benefit.

Indian FM on the other hand is also not interested to put tarrifs on the landgrabbing China and its panel makers. India lost the second highest foreign exchange due to import of Chinese capital goods like machines, turbines etc. Oil import cost the highest Foreign Exchange.

So technically no new rules had to be formed... other than guarantee of non introduction of duties/traiffs in the future.

The burden of paying back $100 billion in investment and its interest and then profit on it in US$ will be huge...

Just hoping there will not be another ENRON...

Johnson

1/2/2015 04:20:35 am

one small example of scam @ Rs 65,000 Cr (US$ 10 billion)...
http://timesofindia.indiatimes.com/city/mumbai/Less-than-fifth-of-sown-area-in-state-under-irrigation/articleshow/46073064.cms

there are atleast 10 such scams happening every year...

The poorest of the section, people who donot even have bank accounts, contributed about Rs 9,000 Cr (US$ 1.45 billion) in just 5 months under the Jan Dhan scheme.
http://www.niticentral.com/2015/01/20/pm-modi-success-of-jan-dhan-yojana-sets-stage-for-major-transformation-297569.html

So US$ 100 billion is peanuts according to Indian Economy.

Where is the lack of funds?... there has only been lack of "will" not "funds"

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President Obama sought to Create Clean "Power India" Initiative

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