PM Modi-Biden announced joint initiative for renewable energy worth $1 billion

PM Modi-Biden announced a joint initiative for renewable energy worth $1 billion

In NEW DELHI: US President Joe Biden and Prime Minister Narendra Modi have given the go-ahead for a joint investment fund of up to $1 billion to boost India’s efforts for a speedier transformation through the development and deployment of cutting-edge green technologies.

To move forward with the decision made during Modi’s visit to Washington in June of this year, the National Investment and Infrastructure Fund of India and the US Development Finance Corporation have exchanged letters of intent (LoIs) to each provide up to $500 million to anchor a Renewable Infrastructure Investment Fund.

According to a joint statement released following the leaders’ meeting on Friday, the two sides also decided to support a payment security mechanism with both public and private funds to speed up the purchase of made-in-India electric buses for decarbonizing the transportation sector.

According to the announcement, the fund would work to lower the cost of capital and hasten the deployment of new projects in India for renewable energy, battery storage, and green technologies.

The LoIs show Washington’s commitment to making financial contributions to climate action. New Delhi has consistently argued that before urging the Global South to intensify carbon reduction efforts, including a quicker phaseout of fossil fuels, the developed world should first demonstrate that it can be trusted to keep its word.

To accelerate its transition to net zero by 2070, India, which has one of the largest solar energy programs in the world, has recently intensified its focus on battery storage. Grid-scale battery storage will enable the nation to capitalize on the rapidly rising solar and wind energy potential.

The government’s increased attention to carbon mitigation has led to the emergence of green hydrogen as the other main topic. To keep storage costs reasonable, it has approved Rs 3,760 crore as viability gap funding for 4,000 MWh (megawatt-hours) of battery storage capacity that is planned to be built by 2030–2031.

It had earlier in January authorized a support budget of Rs 19,744 crore for the Green Hydrogen Mission, which aims to produce five million tonnes of hydrogen annually along with 125 gigawatts of related renewable energy.

Content Credit: TIMES OF INDIA