India-US MoU on PACESetter Fund: Key Highlights

India-US MoU on PACESetter Fund: Key Highlights

Question: US and India have recently signed an MoU for the promotion of clean energy through funding. Examine the highlights of this MoU.

- India and the US have signed the MoU on the Cooperation to Establish the PaceSetter Fund

- This is a fund for supporting Promoting Energy Access Through Clean Energy/PEACE track of the PACE or US-India Partnership to Advance Clean Energy

- This fund envisages the commercialisation of off-grid clean energy through early stage grant funding to test plus develop innovations including business models, products and systems

- MoU was signed by the Secretary, Ministry of New and Renewable Energy and US State Ambassador to the Republic of India from the US

- The new initiative Promoting Energy Access through Clean Energy is a new treaty under the US Indian Partnership to Advance Clean Energy, flagship initiative on Clean Energy combining resources of US agencies and GoI

- India-US corpus of around INR 500 million or USD 8 million has been drawn on 50:50 sharing basis

- Moreover, as part of the MoU, a Steering Committee comprising Secretary of the Ministry of New and Renewable Energy and US Ambassador to India as well as three representatives from each side

- Cooperation is possible through technical and commercial innovation and advancement of clean energy in off-grid space

Facts and Stats

- India currently has the fifth largest power generation portfolio

- It is also the fifth largest producer of wind energy

- India has been able to generate 1500 MW annual PV capacity towards the close of 2014

- 243 GW of installed capacity has been generated on March 2014

- India plans to generate 20,000 MW of solar power by 2022