New Delhi [India], November 16 : India stands to play a pivotal role in supporting the US renewable energy sector with its large-scale manufacturing capabilities, competitive production costs, and a strong STEM talent pool, highlighted a report by ValueQuest Investment.
The report noted that as the United States navigates the complexities of energy policy under the Trump administration, the outlook for renewable energy remains robust.
It said "India's large scale manufacturing base, STEM talent, competitive cost of production (vs South-east Asia & Mexico), with reliability of supply can make it a preferred partner of choice"
The report also indicated that India could potentially replace Southeast Asian countries as the leading solar PV exporter to the US, especially as the US seeks to reduce its dependence on Chinese supply chains.
"India has the potential to replace South-east Asian countries as the leading solar PV exporter to the US" the report added.
The report stated that the Inflation Reduction Act (IRA) in US has created a solid foundation for accelerating investments in renewables, particularly solar energy, which has surged to 178 GW by 2023 from just 15 GW in 2013.
This growth trajectory is driven by technological advancements, decreasing costs, and a growing public commitment to decarbonization.
The report also stated that it would not be easy for the Trump administration to make chnges in the renewable IRA, it said "Repealing or making significant changes to the IRA would be challenging for any administration. Since the IRA is an enacted law, not a federal agency regulation or executive order, any substantial changes will require congressional approval".
Moreover, the current geopolitical climate, characterized by an anti-China sentiment, presents significant opportunities for India.
As the US aims to diversify its trade partnerships, India's existing trade relationships across various industries, including software and pharmaceuticals, can facilitate a smoother transition into renewable energy collaboration.
Several Indian companies are already establishing manufacturing capacities in the US, mitigating risks and positioning themselves to benefit from tax credits associated with renewable energy production.
The outlook for renewables in the US is promising, and India's strategic advantages can significantly contribute to the sector's growth. By fostering a strong partnership, both nations can advance their energy ambitions while addressing climate change and promoting sustainable development.