U.S.-India Partnership to Advance Clean Energy: A Progress Report

U.S.-INDIA PARTNERSHIP TOADVANCE CLEAN ENERGY(PACE)A PROGRESS REPORTU.S. DEPARTM ENT O FJUNE 2012

The U.S.-India Partnership to Advance Clean EnergyPACE - RResearchJoint Clean Energy Research andDevelopment Center: initial priorityareas in solar energy, buildings efficiency,and second generation biofuels.PACE - DDeploymentEfficiency, renewable energy, cleanerfossil technology, clean energyplanning, engaging the private sector,and mobilizing investment.U.S.-INDIA PARTNERSHIP TO ADVANCE CLEANENERGY (PACE)A PROGRESS REPORTBY THE U.S. DEPARTMENT OF ENERGY, U.S. DEPARTMENT OF STATE, U.S. AGENCY FORINTERNATIONAL DEVELOPMENT (USAID), U.S. TRADE AND DEVELOPMENT AGENCY (USTDA),U.S. DEPARTMENT OF COMMERCE, OVERSEAS PRIVATE INVESTMENT CORPORATION (OPIC),AND EXPORT-IMPORT BANK (EX-IM).Photos courtesy of the Department of Energy’s ETVC, the White House, State Department, U.S. Agency forInternational Development, U.S. Trade and Development Agency and Prime Minister of India websites (or asotherwise indicated).

EXECUTIVE SUMMARY: U.S.-INDIA PARTNERSHIP TO ADVANCE CLEAN ENERGY (PACE)A PROGRESS REPORTEnergy cooperation is a central element of theU.S.-India strategic partnership. President Obamaand Prime Minister Singh launched the U.S.-IndiaPartnership to Advance Clean Energy (PACE) inNovember 2009 to accelerate the transition to highperforming, low emissions, and energy secureeconomies.Since its inception, PACE has mobilizedsignificant resources from both governments andthe private sector to promote clean energy scale-upand low-carbon growth.STRUCTURE OF COOPERATIONWorking under auspices of the U.S.-India EnergyDialogue, PACE engages a diverse array of U.S.and Indian government agencies. On the U.S.Government side, supporting agencies include theU.S. Department of Energy, U.S. Agency forInternational Development, U.S. Department ofState, U.S. Trade and Development Agency,Overseas Private Investment Corporation, Export-Import Bank, U.S. Department of Commerce, U.S.Geological Survey and Office of the U.S. TradeRepresentative.PACE has two primary and interlinkedcomponents: clean energy research (PACE-R) andclean energy deployment (PACE-D).PACE-RESEARCHUnder PACE-R, the U.S. Department of Energy(DOE) and India’s Planning Commissionestablished a Joint Clean Energy Research andDevelopment Center (JCERDC) in November2010 designed to promote clean energy innovationby consortia of scientists and engineers from Indiaand the United States.In May 2011, DOE and the Government of Indiaeach made $25 million available (over five years,subject to appropriations) under a joint solicitationfor R&D proposals by consortia in the initialpriority areas of solar energy, buildings efficiency,and second generation biofuels.The U.S. and Indian prime awardees wereannounced in April 2012 following an extensivemerit-review process. Consortia members havepledged an additional $75 million in matchingprivate funds, for a combined funding total of morethan $125 million to launch R&D cooperationunder JCERDC.DOE’s Office of Policy and International Affairsand the Indo-U.S. Science and Technology Forumare serving as the Secretariat for JCERDC.PACE-DEPLOYMENT (PACE-D)PACE-D is designed to tackle multiple cleanenergy deployment opportunities, including:energy efficiency and distribution reform; scalingrenewable energy, cleaner fossil technology andmanagement; clean energy planning; and engagingthe private sector and mobilizing investment.SIGNIFICANT PROGRESS, SIGNIFICANTOPPORTUNITIESBuilding on a strong legacy of bilateralcollaboration, PACE has already achieved someimportant successes, including the launch of thepotentially transformational joint research effortunder JCERDC. Yet significant opportunities stillremain, and both countries will continue to workhard in the months and years ahead to continue theshared pursuit of a clean energy future.

PACE IN ACTION: SELECTED HIGHLIGHTS$125 MILLION PUBLIC-PRIVATE JOINT RESEARCH CENTER: In April 2012, both countries announced thefirst consortia awardees under the PACE Joint Clean Energy Research and Development Center. These jointU.S.-India, public-private consortia will dedicate efforts towards the discovery of transformational scientificand technological solutions in the areas of building efficiency, solar energy and advanced biofuels. The Centerwill involve over 95 government, private and university organizations in a $125 million effort over five years.NEW 5-YEAR, $20 MILLION COLLABORATION ON DEPLOYMENT: In June 2012, the U.S. Agency forInternational Development (USAID) launched a new five-year technical assistance program to support cleanenergy development and scale up in partnership with the Ministry of Power and the Ministry of New andRenewable Energy. The $20 million contract will improve end-use energy efficiency, increase the supply ofrenewable energy, and adopt and accelerate deployment of cleaner fossil fuel technologies. The focus of theprogram will be on strengthening the enabling environment, increasing access to finance, and enhancinginstitutional and human capacity.MORE THAN $1.7 BILLION MOBILIZED FOR CLEAN ENERGY FINANCE: The United States has establisheda Clean Energy Finance Center at the American Center in New Delhi to support the financing of cleantechnology, staffed with representatives from the U.S. Department of Commerce, the State Department,USAID, U.S. Trade and Development Agency (USTDA), Overseas Private Investment Corporation (OPIC),Export-Import Bank (Ex-Im), and the U.S. Department of Energy (DOE). Since PACE’s inception, theseagencies have mobilized more than $1.7 billion in public and private resources for clean energy projects inIndia.PRIVATE SECTOR ENGAGEMENT: Both countries launched the U.S.-India Energy Cooperation Program (ECP)in late 2010 to better leverage the U.S. private sector role in clean energy deployment. With support from theU.S. Trade and Development Agency (USTDA) the ECP has grown to 16 member companies and has beenable to establish strong working channels for government-to-business technical and commercial partnershipsand to mobilize funding for a growing portfolio of clean energy projects in India.STUDY TOURS AND TRADE MISSIONS: USTDA sponsored the Clean Energy Exchange Program, a series offour reverse trade missions to the United States in the areas of smart grid expansion, solar power generation,unconventional gas, and green buildings. Overall, USTDA support for infrastructure feasibility studies, reversetrade missions and other technical assistance in the Indian market has translated into at least $1.7 billion in U.S.exports.A STRONG BILATERAL PROJECT PORTFOLIO: USTDA has funded feasibility studies and pilot projects forsmart grid implementation with utilities in India and private sector led solar power generation. The two sidesalso continue technical cooperation in support of renewable energy and energy efficiency deployment throughUSAID and DOE and its national labs, including supporting work on solar resource assessment and mapping,solar technologies training for Indian financial institutions, improved wind resource estimates, data center andIT office building efficiency, and Energy Conservation Building Code implementation at the local level.

“Developing and investing in new technologies is a keycomponent to meeting the goals of a clean energy future.This innovative approach to collaborative research is a testamentto the special relationship shared by the two countries.By working with our partners in India and sharing a strongcommitment to building a clean energy economy, we can getfurther, faster, than by working alone.”-- Dr. Steven Chu, U.S. Secretary of EnergyAnnouncing the U.S.-India Joint Clean Energy R&D Center(May 16, 2011)

“The cooperation we are forging here should build habits ofcooperation and bonds of trust as we strive to make both of ourcountries stronger, more prosperous, and better equipped toaddress the challenges we face.”-- Hillary Rodham ClintonU.S. Secretary of StateU.S.-India Strategic Dialogue (July 2011)

PARTNERSHIP TO ADVANCE CLEAN ENERGYRESEARCH

PACE-RESEARCH (PACE-R) OverviewDuring President Obama’s head-of-state visit toIndia in November 2010, the U.S. Department ofEnergy (DOE) and India’s Planning Commissionentered into an Agreement to Establish a JointClean Energy Research and Development Center(JCERDC) to promote clean energy innovation byconsortia of scientists and engineers from Indiaand the United States.JCERDC’s structure is designed to encouragepartnerships, leverage additional sources offunding, and engage private sector companies bestplaced to understand the near-term clean energyresearch and development (R&D) needs for abroad, industry-wide impact.PACE-R collaboration under JCERDC representsthe most integrated joint clean energy undertakingDOE has done with any country, including theDepartment’s first-ever joint funding solicitationwith another government.U.S.-INDIA JOINT FUNDING OPPORTUNITYANNOUNCEMENT (JOINT FOA):In May 2011, DOE and the Government of Indiaeach made $25 million available (over five years,subject to appropriations) for work conducted byU.S. and Indian institutions and individuals underthe first JCERDC Joint FOA for R&D proposals inthe initial priority areas of solar energy, buildingsefficiency, and second generation biofuels. Theprime awardees were announced in April 2012following an extensive merit-review process:• The National Renewable Energy Laboratory(NREL) and India’s Institute of Science atBangalore in the area of solar energy;•Lawrence Berkeley National Laboratory(Berkeley Lab) and India’s Center forEnvironmental Planning and Technology (CEPT)University-Ahmedabad in the area of buildingsefficiency; and•The University of Florida and Indian Institute ofChemical Technology(IICT)-Hyderabad in thearea of second-generation biofuels.Consortia members have pledged an additional $75million in matching private funds, for a combinedfunding total of more than $125 million to launchR&D cooperation under JCERDC.BREAKTHROUGH PACE RESEARCH WILLADVANCE CLEAN ENERGY DEPLOYMENTUNDER THE U.S.-INDIA ENERGYDIALOGUE AND PACE-D ACTIVITIESSUSTAINABLE CITIES: DOE is sharing models,building guidelines, lessons learned, best practices,as well as other tools and information to advance thedevelopment of near-zero urban energy cities andcommunities. Brookhaven National Laboratory(BNL) and Lawrence Berkeley National Berkeley(Berkeley Lab) are working with key partners,including India’s Ministry of Urban Development,Ministry of Commerce and Industries, and Ministryof New and Renewable Energy (MNRE) to advanceplanning and implementation of these cutting-edgeurban planning tools.SOLAR TECHNOLOGY: DOE’s National RenewableEnergy Laboratory (NREL) collaborates withMNRE’s Solar Energy Center (SEC) on solarresource assessments and mapping. The twoinstitutions are also collaborating on the reliabilityof photovoltaic (PV) modules and on minigrids.WIND TECHNOLOGY: NREL collaborates withIndia’s Centre for Wind Energy Technology (C-WET) to accelerate development of testing facilitiesand deployment of wind energy technologies --improving wind resource estimates, on-shore andoff-shore wind turbine modeling and energytechnology field testing.ADVANCED BIOFUELS: DOE and NREL havecollaborated with MNRE on advanced biofuels,providing technical support to the Indian OilCorporation (IOC) for the development of acellulosic ethanol pilot plant design. Additionalefforts include R&D on jatropha biodiesel for use inon-road transport, as well as jatropha cropdevelopment and testing. DOE’s Argonne Nationallaboratory (ANL) is also collaborating with IIT-Kanpur on the production and evaluation ofbiodiesel fuels from Jatropha and Karanja feedstocks for heavy-duty engine applications.POLICY BEST PRACTICES AND ANALYSIS: DOEand NREL are collaborating with MNRE on thedevelopment of a database to catalogue national,state and local incentives and policies for energyefficiency and renewable energy in India similar tothe DSIRE database in the United States.

ormer Ambassador of India to the United States Meera Shankar andDeputy Secretary Daniel Poneman at the Initialing Ceremony forJCERDC at DOE Headquarters in Washington (August 2010 )“We are two nations, both of which are committed to sustainabledevelopment, both of which are committed to assuring a clean andprosperous future for all of our people. And we both face many of thesame challenges to developing our energy future.As we move forward together, we will continue to expand our cooperationto promote a secure and stable world, to advance technology andinnovation, to expand mutual prosperity and global economic growth, tosupport sustainable development, and to lead the global community inachieving a clean energy future.”-- Daniel PonemanDOE Deputy Secretary of Energy

SOLAR ENERGY CONSORTIUMJOINT CLEAN ENERGY RESEARCH AND DEVELOPMENT CENTER (JCERDC)Under JCERDC’s first joint Funding OpportunityAnnouncement (Joint FOA), DOE and theGovernment of India will each award $12.5million in financial assistance (over five years) tosupport solar energy R&D by teams of scientistsand engineers from India and the United States,subject to appropriations.Following a competitive merit-review process, theNational Renewable Energy Laboratory (NREL)and India’s Institute of Science at Bangalore wereselected to lead the U.S. team members and Indiateam members, respectively, of a consortiumfocused on the launch of a Solar Energy ResearchInstitute for India and the United States(SERIIUS).SERIIUS will develop and ready emerging andrevolutionary solar electricity technologies towardthe long-term success of India’s Jawaharlal NehruNational Solar Energy Mission and DOE’sSunShot Initiative. SERIIUS will carry outfundamental and applied research, analysis andassessment, outreach, and workforce developmentthrough three research thrusts:1. Sustainable Photovoltaics (PV) to develop nextgenerationmaterials, devices, and manufacturingprocesses tailored to India’s needs, environment,and resource availability.2. Multiscale Concentrated Solar Power (CSP) toovercome critical science and engineeringchallenges for reliable multiscale (including small25–500 kW) CSP systems.3. Solar Integration to identify and assess keytechnical, economic, environmental, and policybarriers to enable a research agenda for technicalreadiness in India and to benefit the United States.Supported by a planned additional cost-share ofapproximately $12.85 million from U.S. consortiummembers, NREL will collaborate with a number ofU.S. partners—which include Sandia NationalLaboratories; RAND Corporation; LawrenceBerkeley National Laboratory; Arizona StateUniversity; Carnegie Mellon University; ColoradoSchool of Mines; Massachusetts Institute ofTechnology; Purdue University; StanfordUniversity; University of Central Florida; Universityof South Florida; Washington University in St.Louis; Cookson Electronics, Corning Incorporated;General Electric Company; Konarka Technologies,Inc.; MEMC Corporation; and Solarmer Energy Inc.Supported by a planned additional cost-share ofapproximately $21 million from Indian consortiummembers, the Indian Institute of Science-Bangalorewill collaborate with a number of Indian partners—which include the Indian Institute of Technology –Bombay; Center for the Study of Science,Technology and Policy; International AdvancedResearch Centre for Powder Metallurgy and NewMaterials; Solar Energy Centre; Indian Institute ofTechnology-Madras; Indian Association for theCultivation of Science; Clique Developments Ltd.;Hindustan Petroleum Corporation Ltd.; Moser BaerIndia Ltd.; Thermax Ltd.; TurboTech Precision;Engineering Ltd.; and Wipro Ltd.

KEY FACTS: Solar Energy inIndiaWith about 300 sunny days a year, India’s solarenergy potential is among the best in the world --approximately 5,000 trillion kilowatt hours (kWh)per year incident over India’s land area receives anaverage hourly solar radiation of 200 megawatts(MW) per square kilometer.According to the India Energy Portal developed byThe Energy and Resources Institute (TERI),approximately 12.5 percent of India’s land mass(413,000 square kilometers) receives sufficientradiation to generate solar power.India’s solar power generation capacity has grownfrom 8 MW in January 2010 to over 979 MW as ofMay 2012 (MNRE, Progress under JawaharlalNehru National Solar Mission, May 11, 2012).India’s Jawaharlal Nehru National Solar Mission isa major initiative of the Government of India andState Governments to promote ecologicallysustainable growth while addressing India’s energysecurity challenge with a goal to install 20,000MW of solar power and achieve price parity withIndia’s grid power tariff by 2022.KEY FACTS: Solar Energy inthe United StatesAccording to DOE assessments, the land arearequired to supply all end-use electricity in theUnited States using PV is only about 0.6 percent ofthe country’s total land area. Similarly, the technicalpotential for Concentrated Solar Power (CSP) isenormous: about 17,500 TWh of annual CSP.Although solar energy currently supplies only asmall fraction of energy needs in the United States,solar manufacturing costs and sales prices havedropped dramatically over the past few decades andsolar technologies are approaching energy-priceparity with conventional generating sources in someregions of the United States. These gains havecome partly through research and development(R&D) and partly through private-sectorcompetition by companies in the United States andother international markets.DOE’s SunShot Initiative aims to further acceleratethis cost curve, reducing the price of solar energysystems by about 75 percent by the end of thedecade. Achieving the level of price reductionsenvisioned in the SunShot Initiative could result insolar meeting 14 percent of U.S. electricity needs by2030 and 27 percent by 2050.

BUILDINGS EFFICIENCY CONSORTIUMJOINT CLEAN ENERGY RESEARCH AND DEVELOPMENT CENTER (JCERDC)Under JCERDC’s first joint Funding OpportunityAnnouncement (Joint FOA), DOE and theGovernment of India will each award $6.25million in financial assistance (over five years) tosupport R&D for energy efficient buildings,subject to appropriations.Following a competitive merit-review process,Lawrence Berkeley National Laboratory (BerkeleyLab) and India’s Center for EnvironmentalPlanning and Technology (CEPT) University-Ahmedabad were selected to lead a new joint U.S.-India research center focusing on energy efficiencytechnologies for buildings. The consortium’s U.S.-India Joint Center for Building Energy Researchand Development (CBERD) will conduct researchwith Indian counterparts focused on the integrationof information technology with building systems incommercial and high-rise residential buildings.The R&D tasks are designed to acceleratebuildings efficiency technology with R&D in anumber of areas, including: (1) simulation;(2) monitoring; (3) controls; (4) envelope/passivedesign (insulation, cool roofs); (5) advancedtechnologies (HVAC, lighting); (6) thermalcomfort; (7) grid responsiveness, (8) renewableintegration; and (9) scientific collaboration. Thisoutcome-based R&D will result in significantenergy savings by driving development of costeffectivetechnologies and their implementationacross buildings.Supported by a planned additional cost-share ofapproximately $15.5 million from U.S. consortiummembers, Berkeley Lab will collaborate with anumber of third-party partners. The U.S. partnersinclude Oak Ridge National Laboratory; Universityof California Berkeley; Carnegie Mellon University;Rensselaer Polytechnic Institute; Autodesk, Inc.;California Energy Commission; Delphi; enLighted,Inc.; Honeywell; Infosys Public Services; Ingersoll-Rand/Trane; Lighting Science Group Corp.; Nexant;Saint Gobain Corp./SAGE Electrochromics;SynapSense; The Weidt Group; Bay AreaPhotovoltaic Consortium; City of San Jose; HOKArchitects; Natural Resources Defense Council.Supported by a planned additional cost-share of$17.8 million from India consortium members,CEPT University-Ahmedabad will collaborate witha number of third-party partners. The Indianpartners include Asahi India Glass, BiodiversityConservation India, Confederation of IndianIndustry– Sohrabji Godrej Green Business Center,Glazing Society of India, Indian Society of HeatingRefrigerating and Air-conditioning Engineers,Indian Society of Lighting Engineers, Infosys,Neosilica Technologies, Oorja Energy EngineeringServices, PBC Ventures, Philips, Pluss Polymers,Rajasthan Electronics and Instruments Limited,Saint Gobain, Schneider, Sintex, SkyshadeDaylights, and Wipro EcoEnergy.

KEY FACTS: Buildings EE inIndiaAccording to the Energy Conservation andCommercialization (ECO) Bilateral Project, India’sresidential and commercial sectors account for about33 percent of the total electricity used in India.An estimated 66 percent of commercial buildingstock in India is yet to be constructed with 1.3 billionsquare meters of new floor space added over the next20 years. Commercial sector electricity consumptionhas been growing at 12-14 percent per year onaverage, attributed to the increasing electricityconsumption in existing buildings as well asincreasing energy intensity of newly constructedcommercial buildings.Under the Energy Conservation Act 2001, theGovernment of India launched Energy ConservationBuilding Code (ECBC) on a voluntary basis toimplement minimum energy performance standardsfor new commercial buildings having a connectedload of 500 kW or contract demand of 600 kVA. TheBureau of Energy Efficiency (BEE) is implementingcapacity building programs and developing technicaldocuments and training material to raise awarenessabout ECBC and to enhance the professional skills ofbuilding design professionals. Accomplishmentinclude:• Over 700 ECBC-compliant buildings are at variousstages of construction.• Two States have adopted ECBC, making itmandatory for all new, large-commercial buildings tocomply with the Code.• Performance contracting through Energy ServiceCompanies (ESCOs) is being promoted to enable theretrofit of existing buildings.• In September 2011, the U.S.-India CEO Forum alsopledged to support ECBC in two Indian cities.Launched by the Confederation of Indian Industry(CII) in 2001, the Indian Green Building Council(IGBC) is also supporting efficiency in buildingsthrough a voluntary, market-driven building ratingsystem tailored to India based on the U.S. GreenBusiness Council’s Leadership in Energy andEnvironmental Design (LEED) rating system.KEY FACTS: Buildings EE in theUnited StatesIn the United States, buildings use more energy than anyother sector of the U.S. economy, consuming more than70 percent of electricity and over 50 percent of naturalgas.According to DOE studies, after losses in generating anddelivering electricity, about 11 Quads of fossil fuels and9 Quads of electricity were consumed in buildings in2009. That energy was principally used for heating,ventilation, and cooling (HVAC); lighting; waterheating; and electronics.Electricity accounts for 40 percent and 53 percent of siteenergy use in residential and commercial buildings,respectively; fuels for heating and cooking comprise thebalance. Commercial buildings use 75 percent moreenergy per square foot than residential buildings. Onaverage, American households spend $2,200 per year onenergy at home.DOE’s Building Technologies Program (BTP) has setthe ambitious goal to make grid-connected buildings 60to 70 percent more energy efficient than today’s typicalbuildings, with renewable energy providing a portion ofthe power needs.Although building codes are legislated at the individualstate level in the United States, the Energy Policy Act of1992 mandated that DOE participate in the modelnational codes development process to help states adoptand implement progressive energy codes.DOE’s Building Energy Codes Program (BECP)supports the adoption and enforcement of energy codesin the states, maintaining free software and tools tosupport those codes and standards (including the awardwinningREScheck software for low-rise residentialbuilding energy code compliance, and the COMchecksoftware for commercial building energy codecompliance). BECP also conducts outreach anddeployment activities related to energy codes and highperformancesustainably designed buildings.System integration can reduce loads by integratingbuilding design aspects (such as size, siting, anddaylighting) with intelligently coordinated componentsand controls. DOE’s EnergyPlus software allowscalculation of the savings potential of a variety ofbuilding energy options. Since 2001, more than 100,000copies have been downloaded.

SECOND GENERATION BIOFUELSCONSORTIUMJOINT CLEAN ENERGY RESEARCH AND DEVELOPMENT CENTER (JCERDC)Under JCERDC’s first joint Funding OpportunityAnnouncement (Joint FOA), DOE and theGovernment of India will each award $6.25million in financial assistance (over five years) tosupport R&D for second generation biofuels,subject to appropriations.Following a competitive merit-review process, theUniversity of Florida and Indian Institute ofChemical Technology(IICT)-Hyderabad wereselected to lead team members of a consortiumfocused on the launch of cutting edge R&D insecond generation biofuels production. The goal ofthis project is to develop and optimize selectednon-food biomass based advanced biofuels andbiobased products systems for the United Statesand India.This R&D will also advance the development ofsustainable, replicable feedstocks production,logistics, processing, and biofuels distributionsystems with the development of a wellcoordinatedand synergistic approach to secondgeneration biofuel production in these areas.Supported by a planned additional cost-share of$6.25 million from U.S. consortium members, theUniversity of Florida will collaborate with a numberof third-party partners—which include theUniversity of Missouri; Virginia Tech; MontclairState University; Texas A&M University; Show MeEnergy; and Green Technologies.Supported by a planned additional cost-share of $5.3million from Indian consortium members, the IndianInstitute of Chemical Technology-Hyderabad willcollaborate with a number of third-party partners—which include the International Crops ResearchInstitute for the Semi-Arid Tropics-Hyderabad;Directorate of Sorghum Research-Hyderabad;Jawaharlal Nehru Technological University-Hyderabad; Tamil Nadu Agricultural University;Rajamatha Vijayaraje Sindia Krishi VishwaVidyalay; Centre for Economic and Social Studies;Indian Institute of Technology-Delhi; IndianInstitute of Technology-Chennai; and Abellon CleanEnergy.

KEY FACTS: Biomass inIndiaDiesel and petrol (gasoline) meet more than 95percent of the requirement for transportation fuel.India is the fourth largest producer of ethanol inthe world. According to India’s Ministry ofAgriculture, India has 330 distilleries whichproduce 4 billion liters of rectified spirit (alcohol)per year. Of those distilleries, approximately 115have the capacity to distill conventional ethanolwith a capacity for 1.8 billion liters per year,sufficient (given bumper crop sugarcane and sugarproduction) to meet a government mandated 5percent blending requirement that took effect inOctober 2008.Given the steady rise in demand for passenger andfreight vehicles in the transport sector, thedevelopment of latest generation biofuelsrepresents a significant energy source for India todiversify its energy mix and narrow the importexportbalance for its upstream petroleum supplyneeds.Nevertheless, biofuel production and consumptionin India remains in early stage development.Although India currently produces conventionalbio‐ethanol from sugar molasses, production ofadvanced bio‐ethanol and second-generation arestill in the research and development phase.In December 2009, the Government of Indiaapproved a new Ministry of New and RenewableEnergy (MNRE) “National Policy on Biofuels”with a proposed target of 20 percent blending forbio-diesel and bio-ethanol by 2017. The policytargets biofuel feedstocks derived from agriculturalwastes and non-food feedstock grown on degradedacreage or wastelands.India has also launched a National Bio-dieselMission (NBM) which identified jatropha curcasas the most suitable tree-borne oilseed for biodieselproduction.Under the upcoming 12th Five Year Plan, India’sPlanning Commission is also seeking to build uponits previous target to cover 11.2 to 13.4 millionhectares of land under jatropha cultivation by theend of the 11th Five Year Plan (2011/12).KEY FACTS: Biomass in theUnited StatesAlmost 95 percent of U.S. transport energy and37 percent of primary energy comes from oil, nearlyhalf of which is imported.Ethanol is the most widely used biofuel in theUnited States today. It may be available at yourlocal gas station. Ethanol is currently sold as E-10, ablend of 10 percent ethanol and 90 percent gasoline.E-10 helps cars run better and results in lesspollution than regular gasoline. At some gasstations, ethanol is also sold as an alternative fuelknown as E-85. E-85 contains 85 percent ethanoland is used in specially designed cars and trucksknown as flexible fuel vehicles (FFVs). More thanseven million FFVs are on the road today.A Renewable Fuel Standard (RFS) administered byEPA sets minimum amounts of biofuels that must beblended into vehicle fuels. The Energy Policy Act of2005 established RFS1, which sets a minimumamount of ethanol (7.5 billion gallons) that must beblended into gasoline by 2012. The EnergyIndependence and Security Act of 2007 establishedRFS2, broadened the RFS to include second- andthird-generation biofuels, set a new target (36 billiongallons in 2022), established separate volumerequirements for new categories of fuel based onfeedstock and vehicle compatibility.Biofeedstocks can be divided into severalcategories: (1) conventional crop-basedcarbohydrates or lipids (e.g., corn and otherstarches, sugarcane, or vegetable oils), (2) cellulosicfeedstocks (e.g., switchgrass, crop and woodbyproducts), and (3) non-land based organisms(algae and other concepts).Resource requirements (e.g., water and landintensity) and interactions with food and feedmarkets complicate the deployment of crop-basedbiofuels at material scales, driving research intoalternative feedstocks. At the same time, increasingproductivity of the corn crop will produce largeamounts of starch and the easy conversion of starchto ethanol makes it likely that corn ethanol willcontinue to contribute to the U.S. fuel supply.Cellulosic feedstocks are likely to be of growingimportance, driven by RFS2 and the potential forminimizing impacts on food and feed markets.

lanning Commission Deputy Chairman Ahluwalia meets with Secretary Chuand DOE Assistant Secretary David Sandalow in New Delhi (November 2009)“This innovative research program will help promote clean energy, createjobs, and open export opportunities for U.S. business. By bringing someof our best scientific and technical minds together, we can strengthenboth our great nations.”-- David SandalowAssistant Secretary, U.S. Department of EnergyOffice of Policy and International Affairs

Partnership to Advance Clean EnergyDeployment

PACE DEPLOYMENT (PACE-D) OVERVIEWThe Deployment component of PACE (PACE-D) isdesigned to support India’s accelerated transition toa high performing, low emissions and energy secureeconomy by tackling multiple clean energydeployment opportunities, including:• Energy efficiency and distribution reform;• Scaling renewable energy technologies;• Cleaner fossil technology and management;• Enhanced greenhouse gas (GHG) mitigation• planning and programs; and• Engaging the private sector and mobilizinginvestment.A WHOLE-OF-GOVERNMENT EFFORTSeveral U.S. government agencies contribute toPACE-D efforts under the auspices of the U.S.-IndiaEnergy Dialogue. The U.S. Agency for InternationalDevelopment (USAID) plays a lead role in shapingthe overall approach to PACE-D, supported byactive engagement from the U.S. Department ofEnergy (DOE), U.S. Department of State, U.S.Trade and Development Agency (USTDA),Overseas Private Investment Corporation (OPIC),Export-Import Bank (Ex-Im), U.S. Department ofCommerce, and Office of the U.S. TradeRepresentative (USTR). This work is shaped to alarge extent by two separate bilateral agreementsbetween the two governments, one between USAIDand the Ministry of Power, and the other betweenUSAID and the Ministry of New and RenewableEnergy.ENERGY EFFICIENCY AND DISTRIBUTIONREFORMThe energy efficiency and distribution reformcomponent of PACE-D is focused on:• Deployment of market driven energy efficienttechnologies such as Smart Grids, Net ZeroEnergy Buildings, Waste Heat Utilization, andHeating Ventilation and Air Conditioning.• Support for the Bureau of Energy Efficiency(BEE) through technical assistance and capacitybuilding activities to implement India’s NationalMission on Enhanced Energy Efficiency under theNational Action Plan on Climate Change.• Support for State Development Agencies todevelop and implement state EE action plans, andimprove regulatory environment for rapiddeployment of EE technologies.NEW USAID FIVE-YEARTECHNICAL ASSISTANCE PROGRAMIn June 2012, USAID launched a new fiveyear,$20 million PACE-D technical assistanceprogram that will work to increase India’ssupply of renewable energy, improve end-useenergy efficiency, and adopt and acceleratedeployment of cleaner fossil fuel technologies.In partnership with the Ministry of Power andthe Ministry of New and Renewable Energy(MNRE), the focus of the program will be onstrengthening the enabling environment,increasing access to finance, and enhancinginstitutional and human capacity to supportdeployment of clean energy at scale.• Facilitation for the development of innovativefinancial instruments and process for newinvestments deployment of energy efficiencytechnologies at scale.One example of this cooperation is the Bureau ofEnergy Efficiency (BEE) and Ministry of Power’simplementation of Energy ConservationBuilding Codes (ECBC). This collaborationstarted more than ten years ago -- USAID’s ECOprogram, launched in 2000, supported the creationof BEE and the establishment of India’s firstECBC – and continues today.Under PACE-D, USAID is providing technicalassistance support to implement ECBC, andDOE—with partners Alliance to Save Energy,Brookhaven National Laboratory (BNL) andPacific Northwest National Laboratory (PNNL) —is supporting BEE with the roll-out of the codes atthe local level. This activity is also beingimplemented in coordination with the EnergyCooperation Program (ECP) and the U.S.-IndiaCEO Forum.

SCALING RENEWABLE ENERGY TECHNOLOGIESThe renewable energy technologies component ofPACE-D is working to improve access to cleanenergy through scale-up of renewable energy powergeneration by driving down costs towards gridparity and supporting cost-effective off-gridapplications. Focus areas include:• Support to three states in strengthening policy andregulatory frameworks to enable renewableenergy market development.• Support for market driven deployment ofrenewable energy technologies (i.e., renewableenergy based mini/micro grids, off-gridapplications for industrial power and processheating).• Development and testing of innovative financemechanisms to leverage public and private sectorfinancing for renewable energy projects.• Support for partnerships between micro financeinstitutions and renewable energy serviceproviders, including capacity building to increaseclean energy access to rural communities.These efforts contribute to the implementation of theJawaharlal Nehru National Solar Mission (JNNSM)and other renewable energy policies and programs.ENHANCED GHG MITIGATION PLANNING ANDPROGRAMSUSAID and the U.S. Departments of Energy andState will collaborate with the Government of Indiato exchange knowledge and expertise under a newJoint Working Group on Low Carbon Growth underthe U.S.-India Energy Dialogue. The partnershipwill enhance planning, integration, andimplementation of GHG mitigation efforts. This willbe accomplished through technical, analytic,institutional and capacity building exchangesbetween the two countries.Building a Smarter GridPACE partners are working to advance smart griddeployment in India.As an outcome of a smart grid study tour in 2010,USAID supported the Government of India in thedevelopment of a request for proposals on smartgrid pilot projects to be launched by the Ministry ofPower (MOP). Through its Distribution Reform,Upgrades and Management program, USAID hasworked to sensitize partner utilities to smart gridopportunities and is supporting a train-the-trainerscourse on smart grid in collaboration with MOP.Smart grid is also a major component underUSAID’s new PACE-D technical assistanceprogram, which will support the Government ofIndia as it develops a roadmap and commonoperability standards and a centre of excellence onsmart grid, which will be housed at the MOP.USTDA’s strategic application of technicalassistance, training, reverse trade missions, businessworkshops, and cooperative programs supportIndia’s development and clean energy deploymentpriorities while expanding export opportunities forU.S. businesses.For example:CESC SMART GRID FEASIBILITY STUDY: AUSTDA-funded feasibility study and pilot project issupporting the implementation of a smart gridroadmap for the Calcutta Electric SupplyCorporation Limited. The assistance will developrequirements and specifications to address a rangeof improvements and investments including theintegration of smart meters and automated meterreading into CESC’s distribution system.TATA POWER DELHI DISTRIBUTION LIMITEDPROJECT: USTDA is supporting Tata Power DelhiDistribution Limited’s (TPDDL) AutomationRoadmap by providing technical assistance todevelop the requirements and specifications forsmart grid implementation. TPDDL plans toimprove power quality and reliability to itscustomers by adopting a distribution automationsystem and network reliability augmentationprogram. The project is designed to improve theefficiency and reliability of TPDDL’s one-millioncustomer distribution system and to help provideapplication models for other distribution networks inIndia.

BANGALORE SMART GRID PROJECT: USTDAand USAID are supporting the BangaloreElectricity Supply Company Limited’s (BESCOM)effort to integrate smart grid technologies into itsexisting power system. USTDA is helping todevelop the requirements and specifications for asmart grid implementation plan that will enable theintegration of smart meters and automated meterreading into BESCOM's distribution system.Ultimately, this program will advance BESCOM'sefforts to meet the challenge of improving theefficiency and reliability of energy supply amidstgrowing demand from its diverse customer base.RURAL MICRO-GRID POWER FEASIBILITYSTUDY: USTDA is partially funding a FeasibilityStudy grant for Azure Power regarding thedevelopment of a Rural Micro-Grid Solar Powerproject that will be deployed in remote nonelectrifiedvillages in India. The study will assessand provide planning assistance for two 500kilowatt photovoltaic pilot projects in the states ofChhattisgarh and Gujarat.BANKURA AND PHALODI SOLAR PV POWERPROJECT: India’s rapid economic expansion andpopulation growth are placing a growing strainupon the country’s energy infrastructure. Inresponse, India’s federal and state levelgovernments are looking to increase the country’sdomestic clean power production. To further thisgoal, USTDA is supporting AstonfieldRenewables Private Limited in its efforts toprepare the design and deployment of two solarphotovoltaic power projects in India – a 5 MWplant in Bankura, West Bengal and a 50 MW plantin Phalodi, Karnataka. The USTDA-fundedfeasibility study will provide technological andeconomic assessments of both solar PV powerprojects, as well as assist Astonfield withpermitting requirements and a plan for fullimplementation.INDUSTRIAL EFFICIENCY TECHNICALOUTREACH: DOE workshops in Chennai, NewDelhi and Mumbai with India industry are workingto increase awareness of energy management andenergy saving tools and techniques. This outreachwill also train energy auditors on energymanagement, plant assessment, the ISO 50001standard and other energy audit areas.BILATERAL COOPERATION IN THE CONTEXT OF THECLEAN ENERGY MINISTERIAL (CEM)In 2013, India will host the fourth meeting of the CleanEnergy Ministerial (CEM4), a gathering of more than20 governments accounting for 90 percent of globalclean energy investment. The United States and Indiaare collaborating on a number of CEM initiatives,including the Global Efficiency Awards competitionfor flat-panel televisions through the Super-efficientEquipment and Appliance Deployment (SEAD)initiative; a Cool Roofs demonstration project andrating & certification program in India under theGlobal Superior Energy Performance Partnership; andLighting Asia, a program aimed at providing safe,clean and affordable off-grid lighting to two millionrural Indians over the next three years.CLEANER FOSSIL TECHNOLOGY ANDMANAGEMENTThe Cleaner Fossil Technology and Managementcomponent of PACE-D is focused on reducing oravoiding GHG emissions through accelerateddeployment and commercialization of cleaner coaltechnologies. * Focus areas include:• Support for two utilities in improving heat rates inpower plant performance.• Support for the development of concept of ModelPower Plant and development of Service ProviderNetwork.The activity is also expected to contribute to theimplementation of India’s Energy Policy andNational Perspective Plan for Renovation &Modernization (R&M).The U.S. Department of Commerce’s CommercialLaw Development Program is engaging with theMinistry of Petroleum and Natural Gas on theresponsible development of India’s unconventionalgas resources, sharing U.S. experience in establishingnecessary environmental protection and regulatoryframeworks as the GOI prepares for its first shale gasbid round - presently scheduled for 2013. Thiscollaboration is in line with the Unconventional GasTechnical Engagement Program (UGTEP) under theState Department’s Bureau of Energy Resources.(* FY10 appropriation legislation prohibits using certain funds for coaltechnology and production. USAID’s PACE-D contract will support cleancoal activities with $2 million allotted in FY09 funding.)

CLEAN ENERGY FINANCE AND PRIVATESECTOR ENGAGEMENTA major focus of PACE-D is engaging the privatesector and mobilizing investment in clean energy.Since PACE’s inception, the U.S. government hasmobilized more than $1.7 billion in public andprivate resources for clean energy deployment inIndia.A NEW CLEAN ENERGY FINANCE CENTERTo facilitate this work, the United States hasestablished a Clean Energy Finance Center at theAmerican Center in New Delhi, hosted by the U.S.Department of Commerce and staffed withrepresentatives from USAID, USTDA, the OverseasPrivate Investment Corporation (OPIC), Export-Import Bank of the United States (Ex-Im), and theU.S. Departments of State and Energy.These agencies each bring distinct comparativeadvantages to the work of financing clean energydeployment in India and furthering business, export,and investment opportunities for U.S. companies.USTDA’S CLEAN ENERGY EXCHANGEPROGRAMUSTDA launched the Clean Energy ExchangeProgram to introduce energy sector officials andprivate project sponsors from India to U.S. cleanenergy technologies through a series of four reversetrade missions to the United States. These missions,organized in conjunction with the U.S.-India EnergyCooperation Program, support India’s efforts toimprove the supply, cost, and efficiency of energythroughout the country in order to improvestandards of living and promote economic growth.The four exchanges focus on unconventional gasdevelopment, smart grid expansion, solar powergeneration and green buildings/energy efficiency..OVERSEAS PRIVATE INVESTMENT CORPORATION(OPIC)To date, OPIC, the U.S. Government’s developmentfinance institution, has committed $740 million infinancing and insurance for clean energy projects inIndia under PACE.In March 2012, OPIC’s Board of Directorsapproved $250 million in financing to help India’spremier infrastructure lender, InfrastructureDevelopment Finance Company (IDFC), expand itslending to renewable energy and infrastructureprojects, providing much-needed long-term capitalto keep pace with the clean energy sector’s massivepotential.IDFC is using the OPIC guaranty to expand itslending to solar photovoltaic projects, energyefficiency projects, projects that reduce energyconsumption and/or demand, and wind farmprojects, among others. The OPIC financing alsosupports IDFC’s “Go Green” initiative, which aimsto mitigate the social, environmental and carbonfootprint of its projects, as well as lending toinfrastructure projects.U.S.-INDIA ENERGYCOOPERATION PROGRAMThe U.S.-India Energy Cooperation Program(ECP) is a public-private partnership betweenU.S. member companies and the governments ofthe United States and India. It was established toleverage private sector resources in both theUnited States and India in order to promotecommercial development of clean energy projects,and to support the sustainable development of theenergy sectors in both countries.By providing a forum for unified communicationbetween the Government of India and U.S. publicand private sector entities, the ECP supports theacceleration of clean and sustainable energyinitiatives. The ECP Secretariat functions as thefocal point for identifying government andindustry priorities and it recommends trainingprograms and technical assistance activities thatcan be implemented through the ECP. USTDAprovides funding for these activities and the U.S.and Indian energy industries provide supportthrough in-kind contributions.

USAID’S DEVELOPMENT CREDIT AUTHORITYUSAID’s Development Credit Authority (DCA) creditguarantee is a powerful tool for unlocking privatefinancing in support of development priorities.Currently, USAID/India is in the process of establishinga credit guarantee facility to help a clean energyentrepreneur access private finance to help expand thebusiness. Earlier, USAID provided India’s Yes Bankwith a 10-year, U.S. $20 million loan portfolioguarantee to support financing of renewable energy,energy efficiency, and water conservation managementprojects by small and medium enterprises (SMEs).EXPORT-IMPORT BANK (EX-IM BANK)Since January 2011, the Export-Import Bank hasapproved 9 solar energy financings in India with anaggregate value of over $300 million, supporting 238MW of generation. Additionally, there is another $100M(60MWs) of solar energy transactions in India underconsideration by the Board of Directors. Whileaccompanying President Obama on his trip to India inNovember 2010, Ex-Im Bank Chairman and PresidentFred P. Hochberg also signed a $5 billion Memorandumof Understanding with Anil Ambani, Chairman ofReliance Power, that included a proposal for thepurchase of 900 megawatts of renewable energygenerating equipment over a period of five years.CLEAN TECHNOLOGY TRADE MISSIONLed by Under Secretary for International TradeFrancisco Sanchez, the U.S. Department of Commerceorganized a Clean Technology Trade Mission inNovember 2011 to New Delhi, Hyderabad, andAhmedabad. During the mission, representatives fromU.S. clean technology firms promoted U.S. goods andservices through one-on-one business appointments withpre-screened buyers, agents, and distributors; meetingswith national and regional government officials; andnetworking events. The U.S. delegation alsoparticipated in a roundtable with interlocutors fromHaryana, Himachal Pradesh, Uttarkhand, and Punjab.MNRE/NREL/ADB FINANCE TRAININGDOE’s National Renewable Energy Laboratory (NREL)and the Asian Development Bank (ADB) are workingwith the Ministry of New and Renewable Energy(MNRE) on a series of training sessions for commercialbankers on solar power financing. After successfulworkshops in Mumbai and Delhi in 2011, MNRE,NREL, and ADB conducted follow-up workshops inAhmedebad, Bangalore, and Calcutta in May 2012.Case Study:Renewable Energy in India’s Rice BeltRice husks, the hard protective coatings that surroundgrains of rice, are typically discarded in the millingprocess.In 2002, childhood friends Gyanesh Pandey andRatnesh Yaday discovered that some small ricemillers were mixing these discarded husks with thediesel they burned as a way to reduce their dieselconsumption and save money.They realized that the technology needed to convertthe husks to electricity was relatively simple and that,when not combined with diesel, the rice husk biomasscould be gasified without emissions, resulting inclean energy for rural villages from distributed powergeneration.Joined by Gyanesh’s college friend Manoj Sinha andhis fellow alumnus from the University of Virginia’sDarden School of Business, Charles Ransler, the teamformally launched Husk Power Systems by bringingelectricity to the village of Tamkuha in the Dhanaharegion of West Champaran on August 15, 2007.In June of 2009, OPIC committed a $750,000 loan toHusk Power for the development of an additional 36rice husk-powered generation facilities. Husk Powernow operates more than 50 power plants in India.• The basic connection through Husk provides ahousehold with two 15-watt compact fluorescentlights, together with mobile phone chargingthroughout the period each day that the plant runs(up to eight hours in the evening).• Each mini-power plant serves about 500 customers.• Husk works strategically to build plants in remotevillages where it can reach a large number ofhouseholds.• Husk has achieved an average penetration rate of75 percent within the first two months of operationin a new village.Husk Power cites Shell Foundation, Acumen Fund,Draper Fisher Jurvetson, the IFC, LEG VenturePhilanthropy, Bamboo Finance, Cisco and theMinistry of New and Renewable Energy (MNRE) askey partners.

PACE builds on a rich legacy of past and ongoing cooperationunder the U.S.-India Energy DialogueSelected examples:ENERGY CONSERVATION ANDCOMMERCIALIZATION (ECO) BILATERAL PROJECT:The $23 million ECO project was launched in January2000 to enhance commercial viability and performanceof the Indian energy sector and to promote clean andenergy-efficient technologies. The first two phases ofthe ECO project supported the creation of India’sBureau of Energy Efficiency (BEE) and theestablishment of India’s first energy conservationbuilding code (ECBC). The third phase concluded inSeptember 2011. The final phase supportedimplementation of ECBC, promoted institutionalcapacity development at National and Sub-Nationallevel and developed a Net Zero Energy Buildings(NZEB) Strategy Roadmap for India which outlines theapproach for driving NZEBs to scale in India.DISTRIBUTION REFORM, UPGRADES ANDMANAGEMENT PROGRAM (DRUM):USAID and India’s Ministry of Power (MOP)developed the DRUM program in 2004 to createreplicable, sustainable, and scalable “centers ofexcellence” in the electricity distribution sector.DRUM helped develop the vision for “smart grids” forIndia’s power sector -- integrating informationtechnology with transmission and distribution networksfor finer control of energy flow and the integration ofrenewable energy power generation.DRUM will close on September 2012. In this last phaseof the program, three train-the-trainer modules arebeing developed on smart grid, improved distributionequipment, and business process re-engineering.GREENHOUSE GAS POLLUTION PREVENTION (GEP)PROGRAM:Concluded in September 2011 after 16 years, this $39.2million USAID initiative reduced GHG emissionsthrough efficient coal conversion and alternativebagasse cogeneration. According to independentassessment, the program helped India avoid about 100million tons of GHG emissions and also reduced coalconsumption by 78 million tons, worth, a savings ofapproximately U.S. $1.5 billion.WATER-ENERGY NEXUS ACTIVITY(WENEXA-II):The program, which concluded in July 2011, aimed atimproving the co-management of energy and waterresources in agriculture, urban and industrial sectorsthrough enhanced power distribution and end useefficiency, coupled with sound water managementpractices. WENEXA resulted in an innovative publicprivatepartnership between a public utility and EnergyService Company (ESCO) for energy conservation inthe agricultural sector and a pioneering program toreuse municipal waste water for power generation. Sofar 300 pumps have been replaced with highly energyefficient pumps, reducing energy consumption by 30percent.Above: Projects supported by DRUM: theDistribution Reform, Upgrades and ManagementProgram. (Top two photos courtesy of USAID/India;bottom photo by Melissa Fraser, USDA)

Looking AheadThe energy and climate challenges facing the United States and India willnot be solved in weeks or months. Instead, this will require sustainedwork over years and decades. Our two countries will compete in theglobal marketplace and many other arenas, but we have much to learnfrom each other. There will be many opportunities to cooperate in meetingthese challenges—bilaterally as well as in multilateral fora including theClean Energy Ministerial, the UN Framework Convention on ClimateChange, the International Partnership for Energy Efficiency, and the G-20.Working together, we can accomplish more than acting alone.The PACE program relies on the commitment and dedication ofnumerous people in agencies and ministries in both countries. We aregrateful for their continued support and participation.