The United States Agency for International Development (USAID) and the International Solar Alliance (ISA) have signed a Memorandum of Understanding (MoU) on December 6, 2024, to promote responsive and sustainable power systems that leverage diverse renewable energy sources. 

The collaboration was announced by leaders US President Joe Biden and Indian Prime Minister Narendra Modi, as the two countries partner to address the climate crisis and advocate renewable energy technologies. The collaboration seeks to enhance renewable energy adoption, bolster regional energy interconnections, and advance the creation of a unified grid for efficient large-scale clean power transfer.

USAID and ISA will work together to develop and advance clean energy transmission networks. Under the MoU, the focus will be on regions such as South and Southeast Asia, the Persian Gulf and Africa, to enhance energy security, sustainability and cross-border access to renewable energy, according to a statement by USAID. 

The International Solar Alliance’s (ISA) One Sun, One World, One Grid (OSOWOG) initiative, a flagship effort aimed at promoting cross-border energy trade and ensuring accessible, reliable, and affordable renewable energy, gains momentum with this strategic partnership. Co-founded by India and France in 2015 and based in Gurugram, India, the ISA serves as a global platform advancing solar energy adoption. 

USAID will contribute technical expertise, innovative financing tools, and extensive experience in sustainable energy solutions to support the ISA’s mission of combating climate change and implementing the OSOWOG initiative.

In the statement, the Mission Director Dr. Steven Olive said, “The U.S. Government is committed to advancing global clean energy transitions as part of our efforts to address the climate crisis. Promoting sustainable power systems that incorporate renewable energy sources is essential for building energy security and driving economic growth,” noting “This Memorandum of Understanding with the International Solar Alliance is an important step in achieving these goals by strengthening energy systems both regionally and globally.”

 “ISA and USAID Memorandum of Understanding (MoU) signed today shall jointly endeavour to accelerate trans-regional electricity grid interconnections, enhance regional power system planning and cross-border clean energy trade, create regional clean energy markets/power pools, and mobilize investment and financial models for trans-regional cross-border electricity grid connections and super grids,” added Director General of ISA, Dr. Ajay Mathur. 

Reaffirming a key commitment from the U.S.-India Joint Statement released in September 2024, the MoU has bolstered the identification of clean energy partnerships as a linchpin of the bilateral relationship. The agreement adds to the shared efforts to mitigate the climate crisis, push renewable energy adoption, and resilient energy infrastructure that champion sustainable development, while promoting regional and transcontinental energy integration. 

The joint statement also noted that the two nations have launched several initiatives to accelerate the clean energy transition, including the U.S.-India Roadmap to Build Safe and Secure Global Clean Energy Supply Chains. In its initial phase, the program aims to unlock $1 billion in multilateral financing for renewable energy, energy storage, power grid technologies, and zero-emission vehicles. Additionally, the U.S. International Development Finance Corporation has extended substantial loans to Indian companies like Tata Power Solar and First Solar to expand solar manufacturing capabilities. 

Both countries have also welcomed collaboration on a new National Center for Hydrogen Safety in India and affirmed their intent to use the Renewable Energy Technology Action Platform to enhance clean energy manufacturing and global supply chains, demonstrating a comprehensive approach to addressing climate change and promoting sustainable energy solutions.

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