US-India Clean Energy Program launched

--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.