US, India eye $1b to boost clean energy supply chain

Solar wafers and wind turbine components are amongst the initial focus areas.

The US and India aim to tap the International Bank for Reconstruction and Development (IBRD) for a $1b multilateral funding for projects that will bolster the latter’s domestic clean energy supply chain.

In a statement, the Indian Prime Minister's office said the funding will support supply-side manufacturing capacity expansion for key technology verticals, like solar, wind, battery, and energy grid systems.

The two countries will collaborate with various stakeholders to identify pilot projects that can expand and diversify the clean energy supply chain. Specifically, they will work with industry leaders to identify near-term investment opportunities to expand India’s manufacturing capacity for solar wafers, wind turbine nacelle components, power transmission line components, and energy storage components to name a few.

To support this, the parties, along with industry partners, will formulate policies that will boost demand for locally manufactured clean technologies. They will also tap the private sector to identify opportunities within the said supply chain segments and support an initial set of projects, including one that focuses on clean energy deployment in Africa.

The US and India also aim to forge trilateral deals with African partners that have stated political commitments to clean energy deployment, focusing on solar and battery storage opportunities.

“Over time, we seek to mobilise additional financing into priority clean energy manufacturing sectors that harness public and private financial tools and pioneer innovative financial vehicles to meet the rapid demand for flexible climate finance solutions,” the statement read.