The Asian Development Bank (ADB) and US Agency for International Development (USAID) have signed a memorandum of understanding (MoU) to collaborate on developing clean energy infrastructure in India.
Under the agreed terms, USAID will provide technical assistance to ADB's current and planned investments in renewable energy.
ADB is currently providing financial assistance for the development of power evacuation infrastructure for solar parks in the Indian states of Gujarat and Rajasthan.
It will now provide financing up to $500m each for rooftop solar development, and expansion of the transmission network to connect solar parks in multiple states across the nation under the Ministry of New and Renewable Energy (MNRE) solar park programme.
This planned financing is in response to a request from India's Department of Economic Affairs, Ministry of Finance.
USAID India mission director Jonathan Addleton said: "USAID and ADB have a shared interest in helping the Government of India achieve its clean energy targets.
"This partnership with ADB is a good example of how together we can broaden and multiply our contribution. By aligning our technical expertise and financial resources, we can have an out-sized impact on clean energy deployment."
USAID and ADB will assist MNRE and select states in establishing public private partnership (PPP) investment models for solar parks.
The technical assistance will focus on bringing innovation to the grid integration of power from areas of concentrated renewable energy generation, such as at solar parks.
The specific frameworks for technical assistance are being established in coordination with MNRE, ADB said.
The Indian Government is aiming to have 20,000MW of solarpower connected to the grid by 2022.
It is also planning to reduce the cost of solarpower generation in the country through long-term policy; large-scale deployment goals, and domestic production of critical raw materials, components and products.
Image: An ADB-supported concentrated solarpower plant in Rajasthan, India. Photo: courtesy of Asian Development Bank.