--Partnership to Advance Clean
Energy – Deployment (PACE-D)
NEW DELHI:
The United States Government has had a long and successful strategic
partnership with India
in the energy sector. Over the last 15
years, a USAID program has helped India
avoid about 100 million tons of greenhouse gas emissions and also reduce coal
consumption by 78 million tons, resulting in savings of approximately U.S. $1.5
billion. If our longstanding cooperation in energy is any indication, I firmly
believe the partnership between the United
States and India
will deepen further in every sense in the coming years. It is my privilege to have been entrusted by
President Obama and Secretary Clinton with the job of fostering our partnership. The interactions between our two countries at
all levels are staggering in their breadth and depth and include critical
global challenges like food security, health, and--as we are here to talk about
today--energy and climate change.
We all know that climate change
and energy security are two of the most critical global challenges of the 21st
century. With India’s
energy consumption growing at over 7 percent annually, the country faces
formidable challenges in meeting its energy demands. India
needs to find a way to improve the reliability and adequacy of energy supplies
while making modern energy services accessible and affordable to the entire
population. Such energy security
concerns prompted the United States
and India to
launch the first Energy Dialogue in 2005 to identify mutually beneficial
initiatives that complement Indian and U.S.
development, security, and economic interests.
One significant outcome of our
bilateral Energy Dialogue is the Partnership to Advance Clean Energy, or
“PACE,” which was launched by President Obama and Prime Minister Singh in
November 2009. Over the past two and a half years, PACE has mobilized
government and private sector resources from both countries to improve energy
access and promote low-carbon growth.
PACE has two primary, interlinked
components: a research component, known as PACE-R, led by the U.S. Department
of Energy; and a deployment component, known as PACE-D, led by USAID. PACE-R works to improve energy access and
promote low-carbon growth through research and development. In May 2011, the United
States and India
established a Joint Clean Energy Research and Development
Center that will mobilize $50
million from the U.S. Department of Energy and the Government of India. A consortium of U.S.
and Indian researchers has also pledged $75 million for a total of $125 million
that will go towards research and development.
Research will focus on transformational scientific and technological
cooperation in the areas of building efficiency, solar energy, and advanced
biofuels.
Today, we are here to inaugurate
PACE-D, which began in 2010 when USAID and the Government of India’s Ministry
of Power and Ministry of New and Renewable Energy signed a bilateral agreement.
After much collaboration, we are ready to launch USAID’s PACE-D technical
support program.
The five-year, $20 million PACE-D
contract will help India
transition to a high performing, low emissions, and energy secure economy. PACE-D will work to create an environment
that strengthens institutions; increases the availability of innovative
financing mechanisms; and enhances local capacity to propagate clean energy
solutions.
Working together with the
Ministry of Power and the Bureau of Energy Efficiency, the PACE-D program will
bring to the marketplace clean, reliable, and affordable technologies that
increase energy efficiency. We will employ energy efficient technologies that
include smart grids; “net zero” energy buildings (for example buildings that
produce at least as much energy as they consume); waste heat utilization; and
more efficient heating, ventilation, and air conditioning systems. These initiatives will support the Government
of India’s National Mission on Enhanced Energy Efficiency under its National
Action Plan on Climate Change.
PACE-D will also improve access
to energy through renewable sources. In India,
the use of renewable energy resources has grown, but there is still great
untapped renewable energy potential.
PACE-D will assist the Government of India to:
· Promote grid connected renewable
energy;
· Expand rural electrification through
micro grids; and
· Develop off-grid applications, such as
for fossil fuel replacement, lighting, and rooftop systems.
To support renewable energy, the
U.S. Embassy is replacing its old solar panels on the roof of Roosevelt House,
the Ambassador’s residence, as well as in Embassy residences.
PACE-D will also improve access
to renewable energy by engaging various state and local governments. This decentralized engagement will increase
access to financing, develop sustainable business models, and improve access to
renewable energy. This is clearly a very
ambitious agenda!
Today I am happy to announce
that, after a competitive process, the contract to implement the PACE-D program
has been awarded to the American consulting firm Nexant, Inc. Nexant is a well-established provider of
intelligent grid software and clean energy solutions, known for pioneering,
developing, and advancing electric power grid and alternative energy
technologies and services. Nexant is headquartered in San
Francisco, California and has
31 offices around the world.
For the PACE-D program, Nexant
has organized a consortium of organizations that includes both U.S.
and Indian partners who can provide a range of services and expertise.
As you can see, “partnership” is
a key theme in the implementation of PACE-D.
Since joining the PACE-D initiative in 2010, the Overseas Private
Investment Corporation has approved or committed $741 million to clean energy
projects in India. And the U.S. Trade and Development Agency has
established the Energy Cooperation Program with India
to promote the development of the clean energy market. These expanded financing
efforts are expected to further catalyze clean energy projects in India.
Together with the Government of India, we hope to capitalize on these
partnerships and opportunities and take these experiences to other parts of the
world. Many other countries can benefit
from India’s
experience in moving towards a low carbon economy. I look forward to seeing the
results of this important program.
I would like to thank Ministry of
New and Renewable Energy secretary Pradhan and Ministry of Power Joint
Secretary Arora for your commitment to US-India cooperation. I am proud of our
longstanding partnership in the energy sector and I know that we have the
potential to strengthen this partnership through the broader PACE–D effort.
With your strong support, I know this program will be successful in meeting our
high expectations.