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Home » CleanFuel » US OPIC provides $100 mn for $300 mn South Asia Energy Fund of Global Environment Fund (GEF)

US OPIC provides $100 mn for $300 mn South Asia Energy Fund of Global Environment Fund (GEF)

The Global Environment Fund (GEF) is a private equity fund, that  invests in businesses dedicated to clean technology, emerging markets, and sustainable forestry, with approximately $1 billion in aggregate capital under management.  The GEF has a $300-million South Asia Energy Fund for which the US Overseas Private Investment Corporation (OPIC) will provide $100 million in financing.

The South Asia Energy Fund will invest in solar, wind, hydropower, advanced biofuels and natural gas projects, with focus on India.

It is glad to note that GEF will form an India-specific sub-fund in association with the Infrastructure Development Finance Company and other potential Indian investors targeting India-only investment. Just a couple of days back, the US-India CEO Forum has recommended the setting up of a $1 billion venture capital fund for clean energy projects focusing on bio-fuels, solar and bio-mass as part of the larger goal of ensuring energy security of the two countries. The Asian Development Bank (ADB),  had just recently expressed concerns regarding the funding of  Solar Power Projects under JNNSM.

India to gain from US investment in South Asian energy fund

The US Overseas Private Investment Corporation (OPIC) will provide $100 million in financing for the $300-million South Asia Energy Fund, part of the Global Environment Fund (GEF). The South Asia Energy Fund will invest in solar, wind, hydropower, advanced biofuels and natural gas projects, with focus on India.

In addition, GEF will form an India-specific sub-fund in association with the Infrastructure Development Finance Company and other potential Indian investors targeting India-only investment. This will be in addition to OPIC’s pipeline of more than $280 million clean energy and energy efficiency projects in India, said a statement from the White House.

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Prime among the areas of cooperation will be to launch a US-India Energy Cooperation Program, an innovative public-private partnership that will leverage business resources in both the US and India for commercial projects and pilot development initiatives in clean energy and efficiency.

The US President’s visit will also accelerate establishing a Joint Clean Energy Research and Development Center, that will mobilise up to $100 million in public and private sector funding over five years for R&D on potential breakthrough technologies.

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