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US to invest up to $820 mn in India’s renewable energy sector

As Panchabuta had reported in November last year, The Asian Development Bank (ADB) had said that it would infuse $20 million in  UK-based Renewable Energy Asia Fund. Last month, OPIC had approved $62 million in financing to this fund, which targets renewable energy projects and project developers in Asia, primarily India and the Philippines. The fund focuses on mature renewable technologies, such as wind and small hydro, to help close the sizeable electricity demand-supply gap in its target markets. The fund currently has $125 million under management, which would increase to $187 million with the OPIC financing.

OPIC also recently said that it would provide up to $136 million in financing to Aloe Environment Fund III, which will invest in climate solutions centered around renewable energy generation, recycling, and energy efficiency, specifically in India and Southeast Asia. It will primarily target small and medium-sized enterprises (SMEs). The fund has a target capitalization of $420 million.

The US government’s Overseas Private Investment Corporation (OPIC) intends to infuse $820 million for renewable energy sector projects in India in the current calender year, its chief said Tuesday.

“We hope to generate $820 million in this calender year to contribute to the growth of the renewable energy sector in India,” OPIC president and chief executive Elizabeth Littlefield said at an industry event in New Delhi.

According to Littlefield, a major chunk of about $520 million of the expected investment would come from American companies which would invest in renewable energy sector, while the remaining $300 million will come from private equity investments.

“By the end of this calender year we hope to have generated $520 million in brand new investments from American companies and on top of that $300 million of private equity. So that’s $820 million,” Littlefield, who is a member of US Secretary of State Hillary Clinton’s delegation, said.

Littlefield further said that her agency has doubled the clean energy project portfolio in India in a single year and this now stands at 2,200 MW.

“In the last one year, we have worked very hard with large and small companies in the field of solar energy, off-grid power suppliers, village-based bio-gas plants,” Littlefield said, adding that her agency views the investments in renewable energy sector as a part of broader investments for the infrastructure sector.

Littlefield further said that that the magnitude of investments and interest in India was growing and that India has gained the status of one of her agency’s most important partner countries.

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