Government approves MoU between India and America to establish PACEsetter Fund

The Union Cabinet gave its ex-post-facto approval for the Memorandum of Understanding (MoU) between American and India to establish the PACEsetter Fund.
The PACEsetter Fund is a fund that supports the Promoting Energy Access through Clean Energy (PEACE) an initiative between US and India through Partnership to Advance Clean Energy (PACE).
Accordingly both the countries has raised corpus of about 8 million US dollars (Rs. 50 crore) on a 50:50 sharing basis.

About PACE:

• PACE is a flagship initiative initiated between the U.S. and India in 2009, to work jointly on energy security and clean energy, which primly focuses on accelerating the transition to high-performing, low emissions, and energy-secure economies.
• It endeavours to boost joint efforts to demonstrate the viability of existing clean energy technologies as well as identify new technologies that can increase energy access and security.

Implications:
The approval to this MoU will open up way for commercialization of innovative off-grid clean energy solutions by providing early-stage grant funding, which will thus allow businesses to develop and test innovative products, systems and business models in off-grid clean energy space.
Background:
On June 30 2015 the Government of India and the United States of America has signed a MoU to launch of a new initiative “Promoting Energy Access through Clean Energy (PEACE)” an ambitious cooperation is a new tract under the U.S.-India Partnership to Advance Clean Energy (PACE).

Month: Current Affairs - August, 2015