Page 13 - AsiaElec Week 49 2021

AsiaElec RENEWABLES AsiaElec

US to provide $500mn in soft

loans to support Indian solar

INDIA THE US International Development Finance boost solar panel manufacturing capacity for a
Corporation (DFC) has approved up to $500mn key ally and help mobilise the industry to take up
of debt financing for First Solar’s 3.3-GW pro- better standards that align with US values,” said
posed photovoltaic (PV) solar module manufac- Dev Jagadesan, DFC’s acting CEO.
turing facility in Tamil Nadu, India. “This transaction represents another mile-
This investment will promote DFC’s commit- stone in the United States effort to drive alter-
ment to diversifying supply chains. First Solar native supply chains – and to articulate a vision
produces “thin-film” solar panel modules, which for climate finance that drives our development
do not use polysilicon. mission.”
First Solar, which was the first of the world’s First Solar is the only US company among
ten largest solar manufacturers to join the the world’s ten largest solar manufacturers. It
Responsible Business Alliance, will replicate its announced its intent to build the India facility
industry-leading transparency and traceability in July 2021.
protocols in India, amplifying efforts to boost The company expects to reach 16 GW of
supply chain transparency throughout the global manufacturing capacity in 2024.
renewable energy sector. US support for India’s solar industry is being
Most of the new facility’s production is pursued against the background of regional
expected to sell into the quickly growing solar rivalry with China, which is currently the largest
market in India, which is a key partner to the US provider of India’s solar panels.
in the Indo-Pacific region. In June, the Biden administration banned
“Like the US, India has recognised that it products used in solar panels from a company in
must shape its own sustainable energy future, China’s Xinjiang region over allegations of forced
and has sought to supercharge the expansion of labour.
its domestic solar manufacturing capacity,” said China blasted the action and denies the slave
Mark Widmar, chief executive officer, First Solar. labour charges. In fact, Beijing says that the US,
“DFC’s intent to support this facility has the in taking this politically charged step, is trying to
potential to create a high-visibility, repeatable throttle the Chinese solar industry.
blueprint for enabling the clean energy ambi- In the US, the Biden administration in
tions of likeminded nations through American August released an aggressive plan to produce
innovation, ingenuity and competitiveness.” 45% of the nation’s electricity from solar energy
The deal forms part of India’s efforts to install by 2050 to help combat climate change.
500 GW of renewable power generation in India. According to US Department of Energy
This deal is also an example of President Bid- (DoE) research, by 2035, solar energy has the
en’s Build Back Better World (B3W) Initiative, potential to power 40% of the nation’s electricity
which aims to narrow the global infrastructure and 45% by 2050, as well as drive deep decarbon-
gap, creating opportunities for US businesses isation of the grid, and employ as much as 1.5mn
and combating the climate crisis. people – without raising electricity prices..™
“DFC is thrilled to be in a position to support
First Solar’s new venture in India, which will

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