WASHINGTON (Diya TV) — The U.S. announced the creation of two clean energy projects worth $95 million to bring more energy-efficient appliances to the rural India, as part of its efforts to continue the global transition to zero-and-low carbon energy sources.
The U.S. is on the hook for $70 million worth of the project, which will be paid in Overseas Private Investment Corporation financing, will be used for renewable energy projects in India. An additional $20 million has been pledged by the various philanthropists to bring more efficient appliances to rural Indian villages.
The OPIC financing is for a utility-scale PV project in Telangana. It is sponsored by ReNew Power Ventures.
Known as the U.S.-India Clean Energy Finance program, it will address a key financing gap in the Indian distributed solar market by funding early-stage project preparatory work, the White House said in a statement. The program is expected to unlock up to $400 million in long-term debt financing from OPIC and private sector investors, the White House said.
The U.S. Department of State will, subject to Congressional notification, provide funding for Global LEAP to support the development and roll out of a program to deploy energy-efficient devices such as televisions, fans, and refrigerators at selected Smart Power supported mini-grid sites, the statement added.
It will also develop a strategy for a program-wide scale-up targeted to reduce energy costs for some of the poorest people in India.
“When deployed, it is expected to reduce energy consumption by over 50 percent for rural households, increase revenue for mini-grid operators by over 300 percent per household, and generate rural employment for people involved in distribution and supply chain management of the devices,” the statement said.