Indian energy minister Piyush Goyal has urged the US and its clean energy companies to partner India on its renewable energy vision at a high-level meeting attended by leading US PV firms, including SunEdison, First Solar and SunPower.
The Confederation of Indian Industry (CII) and the American Council on a Renewable Energy (ACORE) organised the meeting in Washington DC, where Goyal discussed the challenges faced by investors in India in relation to Prime Minister narendra Modi’s target of 175GW of renewable energy by 2022 of which 100GW is to be accounted for by solar.
At the meeting, which was also attended by Bank of America, Deutsche Bank and Credit Suisse, Goyal addressed concern over the financial health of Indian distribution companies (discoms) an issue oft cited by the PV industry as a major challenge for the sector’s growth in the country. Goyal added that the government is looking for a long term and sustainable solution to this issue.
Meanwhile he sought to calm concerns over the rupee's stability by highlighting that the Indian rupee has not depreciated more than 3.5% CAGR in 25 years. Furthermore he said that some stalled projects are being cleared.
Sumant Sinha, chairman and chief executive of Renew a Power Ventures said: “US$150 million of financing is required in the clean energy space of which US$100 million will be debt and $50 million will be equity. The US can play a big role in this space in India.”
CII and ACORE also signed a memorandum of understanding for the exchange of best practice and to help boost communication between industry experts.
The meeting precedes the US-India Energy Dialogue and the US-India Strategic and Commercial Dialogue ahead of Modi's second visit to the US at the end of the week.