U.S, India sign $1bn deal to support clean energy exports

The Export-Import Bank of the United States (Ex-Im Bank) and the Indian Renewable Energy Development Agency (IREDA) have signed a US$1 billion Memorandum of Understanding (MoU) that will boost US clean energy exports to India.

Ex-Im Bank Chairman, Fred P. Hochberg, and IREDA Chairman, K.S. Popli, signed the agreement on Tuesday.

Hochberg was visiting India to promote US-manufactured exports in support of US jobs.

Ex-Im Bank said in a statement: “The availability of Ex-Im Bank financing could translate into support for skilled jobs in the US renewable energy sector while contributing to the Indian government’s recently-announced goal of providing 24-hour electricity to India’s 1.3 billion citizens by 2019, much of it set to come from renewable sources.”

Ex-Im Bank has approved over US$350 million of US renewable energy exports to India since 2009 and is one of the top financiers of projects under the National Solar Mission Phase 1.

Hochberg said: “When quality, reliable U.S. goods and services are brought to bear in high-demand markets like India, the benefits are felt in both of our countries. This memorandum of understanding will reinforce the strong ties that America and India already share, create good-paying jobs on both of our shores, and further invigorate America’s clean energy industry while equipping India to meet its own ambitious energy goals.”

After signing the agreement, Hochberg attended the India-US Technology Summit in Noida where he highlighted the MoU as evidence of the mutual benefits that can be realised by buying US clean energy products.

India is the second most popular destination for US exports supported by Ex-Im Bank financing, and claims more than US$7.2 billion of the Bank’s credit exposure up to 2014.

Over the last five years, Ex-Im Bank has authorised an average of US$1.4 billion per year to finance US exports to India.