The US Agency for International Development (USAID) and Asian Development Bank has signed Memorandum of Understanding (MoU) on Monday for providing Rs 5,681 crore ($848 million) in funding to develop solar parks across India.
Under the MoU USAID will align the technical resources of two of its programs to support ADB’s investments in the development of solar parks and renewable energy transmission infrastructure in states at the forefront of India’s efforts to promote clean energy.
The MoU was signed by M Teresa Kho, Country Director, India Resident Mission, ADB and Jonathan Addleton, Mission Director, USAID for India.
“ADB welcomes this collaboration with USAID that brings together our respective strengths, expertise and resources to the common objective of supporting India’s targets for clean energy expansion,” said Teresa in a statement.
The collaboration will initially focus on the state of Rajasthan. USAID and ADB cooperation will design and develop public-private partnership models as well as study options for managing grid reliability.
“This agreement between USAID and ADB will help finance the development of solar parks in support of the Government of India’s renewable energy targets” said Addleton.
The Government of India’s target for renewable energy is 175 Gigawatts of installed capacity by 2022.