The United States and India are seeking to secure $1 billion in multilateral funding from the International Bank for Reconstruction and Development (IBRD) to strengthen India’s domestic clean energy supply chain. This funding aims to bolster the country's manufacturing capacity for key clean energy technologies, such as solar, wind, battery systems, and energy grid infrastructure.
According to a statement from the Indian Prime Minister's office, the funding will support the expansion of supply-side manufacturing for critical technology sectors, including solar wafers and wind turbine components. The two nations will collaborate with various stakeholders to identify pilot projects that could expand and diversify the clean energy supply chain. Specifically, they will work with industry leaders to pinpoint immediate investment opportunities in areas like solar wafer production, wind turbine nacelle components, power transmission line parts, and energy storage systems.
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In addition to expanding manufacturing capabilities, the collaboration aims to formulate policies that increase demand for domestically produced clean technologies. The initiative will engage the private sector to identify potential opportunities within these supply chain segments and support an initial set of projects, including one focused on deploying clean energy solutions in Africa.
The US and India are also exploring trilateral partnerships with African countries that have committed to clean energy initiatives, particularly in solar power and battery storage. These partnerships aim to facilitate clean energy deployment and expand the reach of sustainable energy technologies.
The joint statement from both countries highlighted the long-term goal of attracting additional financing to priority sectors within clean energy manufacturing. The initiative seeks to utilise both public and private financial tools, developing innovative funding mechanisms to meet the growing need for flexible climate finance solutions.
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