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The India US Energy Sector Cooperation to be revamped

India and the United States is all set to revamp their strategic energy partnership to reflect new priorities. The new Strategic Energy Partnership (SEP) will focus on low-carbon pathways and accelerating green energy cooperation.

In a recent introductory meeting of Union Minister for natural gas and petroleum Dharmendra Pradhan with the new US Secretary of Energy Jennifer Granholm, a decision to prioritize greater collaboration in cleaner energy sectors was discussed. Biofuels, Carbon Capture Utilization and Storage (CCUS), Green Hydrogen, through technology exchange, joint R&D through Partnership to Advance Clean Energy Research (PACE-R), among other initiatives, were finalised.

The India-US SEP reflects the new priorities of Prime Minister Narendra Modi and President Joe Biden. This collaboration will intensify the efforts to take advantage of the complementarities of both nations.

The highly advanced American technologies and rapidly growing India’s energy market together can create a win-win situation through a cleaner energy route with low carbon pathways.

History of India-US energy cooperation

India and America have a long and fruitful strategic partnership in the energy sector. It goes way back to the formation of a tiny hydro plant in the early 20th century to now renewable and sustainable developments in energy areas. The cooperation of both countries has come a long way.

The US-India Civil Nuclear Cooperation Agreement of 2008 was key to formalize and put a structure to the energy cooperation between the two countries. Because of this agreement the US helped India in getting a waiver from the Nuclear Suppliers Group to participate in global civil nuclear trade.

Since 2009, the US and India have been together in the clean energy area through the Partnership to advance clean energy (PACE) program. Advancing solar energy, biofuels and energy-efficient buildings were part of the scope of PACE.

The Strategic Energy Partnership

-The Strategic Energy Partnership was established in April 2018 to encourage meaningful engagements through robust government-to-government cooperation and engagement.

-The SEP was set up under then US President Donald J. Trump and Prime Minister Narendra Modi that recognises the strategic importance of energy to the U.S.-India bilateral relationship.

-The Strategic Energy Partnership arrange an inter-agency engagement in both India-US sides across four primary pillars of cooperation:

  • Power and Energy Efficiency,
    -Oil and Gas,
    -Renewable Energy,
    -Sustainable Growth.

-Through these four pillars, the United States and India are working to strengthen and modernize the power grid and distribution utilities for Clean, Affordable, Reliable Energy Access.

-To improve efficiency, flexibility, and environmental performance in the power sector;

-To promote inclusive and sustainable economic growth through long-term energy development;

-To enhance energy security through oil and gas trade,

-For infrastructure investment; advance the development, deployment, and integration of renewable energy and expand access to finance for renewable energy projects;

-Also to reduce market barriers to energy trade and investment.

-The SEP also supports America’s efforts under the AsiaEDGE initiative, which establishes India as a strong energy partner in the Indo-Pacific region.

What are the major outcomes of SEP?

To understand the major outcomes of US-India energy cooperation, one has to decode its four primary pillars.

  1. Power and Energy Efficiency :

Both countries have been constantly collaborating to Modernizing the Power System by developing and implementing new and advanced technologies such AI, ML, Big Data Analytics, Robotics, IOT etc.

-Rooftop solar installation, deployment of Smart Meters and installation of smart grids and revamping the power distribution sectors are some of the recent achievements.

-The two countries are leading joint research and development (R&D) through Advance Clean Energy-Research (PACE-R) on smart grids and energy storage to increase the resilience and reliability of the electric grid.

  • The new areas of research on transformational power generation based on supercritical CO2 (sCO2) power cycles and advanced coal technologies for power generation including carbon capture, utilization, and storage (CCUS) were also initiated.

-Commitment like Westinghouse (USAs Electric Company) nuclear reactor project at Kovvada, Andhra Pradesh are formed to advance civil nuclear cooperation.

-It also promotes continued bilateral R&D engagement on advanced civil nuclear energy technologies through the U.S.-India Civil Nuclear Energy Working Group.

  1. Oil and Gas : A MoU was signed to begin cooperation on Strategic Petroleum Reserves operation.
  • India storing oil in the U.S. Strategic Petroleum Reserve can be a possibility.

-There has been a significant increase in the bilateral hydrocarbon trade through SEP touching 9.2 billion USD during 2019-20 and marking a 93% increase since 2017-18.

  • U.S.-India Natural Gas Task Force to promote greater hydrocarbon trade.
  • A gas task force was also launched to help India increase the share of gas in its primary energy basket.
  1. Renewable Energy :

-As part of its commitment to the COP21, Paris Agreement, India has announced an ambitious plan to reach 450 GW of renewable energy capacity by 2030.

-Under the leadership of PM Modi, in less than 7 years, India has been able to increase the renewable energy portfolio from 30 GW to more than 90 GW.

-A public-private Hydrogen Task Force was launched to produce hydrogen from renewable energy and fossil fuel sources. This is an efficient and cost-effective way of deployment for enhanced energy security and resiliency.

  • A MoU was signed to collaborate on India’s first-ever Solar Decathlon in 2021.

-United States Agency for International Development and Energy Efficiency Services Ltd has jointly initiated Retrofit of Air Conditioning to Improve Air Quality for Safety and Efficiency for healthy and energy-efficient buildings during the pandemic.

-Information is exchanged on sustainable biofuel production for bioethanol and renewable diesel. The use of air and sea transport are also discussed.

-Conversion of bio-waste into biogas is an effective and efficient way for a renewable future.

-The PACE-R program in Phase-2 expanded to cooperation in making coal-fired thermal stations more efficient. It will help India to integrate renewable energy into the Indian grid.

  1. Sustainable Growth : USAID and NITI Aayog collaborated to launch the India Energy Modeling Forum to build a network of modeling communities and its linkage with the Government for analytical work and policy-making exercise.

-USAID launched the South Asia Women in Energy (SAWIE) platform intending to incorporate gender-focused activities across the technical pillars. Empowering Women in the Energy Sector remains a key goal.

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