A new $20-million U.S.-India Clean Energy Finance (USICEF) initiative will invest up to $400 million to provide clean and renewable electricity to up to 1 million households by 2020, the White House said this week during a visit by Indian Prime Minister Narendra Modi.
Another $40-million U.S.-India Catalytic Solar Finance Program will provide financing for small-scale renewable energy investment. Modi’s visit is one of the last opportunities the Obama administration will have to pledge tax dollars to its green energy goals and the opportunity for solar development in India is, indeed, a ripe one.
Cumulative solar installations in India crossed the 7.5 gigawatt mark in May 2016. About 2.2 gw of new capacity has been installed so far this year and it is more than total solar capacity installed in 2015. India’s solar project pipeline has now surpassed 22 gw with 13 gw under construction and 9 gw in the request for proposal process.
India’s Solar Mission
This is all part of Modi’s long-term plan to have 100 gw of solar capacity powering India by 2022. The investments by the Obama administration are also a goodwill gesture that’s designed to get U.S.-based solar panel companies and multinationals with a large presence in the U.S. specified as providers in India’s massive solar park projects. Both governments have been trying to iron out differences that earlier came to a head with the U.S. winning a WTO dispute panel.
The Renewables MMI fell 1.8% this month to 54 from 55 in May. It was one of many slight movements in a tight range for the sub-index that’s not shown much prince movement since September of 2015. The steel metals in the sub-index were also affected by the wild swings between U.S. and foreign steel prices, too.
It doesn’t seem like the pattern of a slow price decline interrupted only sporadically by small periods if increase will change much in the rest of year. Just like it didn’t in the previous three.
As such, investments such as those being made in India will still take years to come to fruition and the markets for solar silicon, neodymium and pretty much everything but the steel components of wind turbines and solar panels will remain niche markets for the foreseeable future.
Actual Renewables Prices
Chinese neodymium increased to $51,668.67 a metric ton this month from $49,418.03/mt last month, an increase of 4.5%. Chinese steel plate fell from $478.14/mt in May to $338.89/mt this month, a staggering drop of 29%. U.S. Steel plate, in contrast, actually increased, going from $621/mt in May to $656/mt this month, a jump of 6%.