US to invest $100m in Indian renewable energy sector

The United States Agency for International Development (USAID) is all set to invest $100m in India’s renewable energy sector through domestic alternative energy fund Nereus Capital.

USAID will collaborate with US-based investor Northern Lights Capital Group, which is expected to provide $40m of the total investment.

The funds facilitated through the agency’s Development Credit Authority are aimed at increasing country’s renewable energy capacity by hundreds of megawatts.

Commenting on the investment, USAID Administrator Raj Shah stated that the large scale funding from USAID will support India’s transition to a low carbon economy, besides furthering developments for enhanced energy access.

"This investment could eventually create as much as 300-400 additional megawatts of sustainable energy capacity, which is equivalent to lighting the homes of tens of thousands of Indian families," added Shah.

"And as our first investment in a private investment fund, it will help to facilitate access for US entrepreneurs to this important emerging market."

Indian government has set renewable energy target of 30,000MW to be achieved within next five years.

Nereus Capital, meanwhile, will facilitate the country in achieving the target by investing in independent developers to develop, construct, and operate wind power, hydropower, solar power, and large-scale energy efficiency projects.

Northern Lights Capital Group partner Jack Swift noted: "With this commitment, Nereus has cemented its role as one of the largest pools of capital specifically focused on Indian renewable energy infrastructure."