The Ministry of New and Renewable Energy (MNRE) recently celebrated a milestone in its drive towards sustainable energy by recognizing the winners of the PACEsetter fund programme’s second round. The PACEsetter fund, established in 2015 jointly by India and the USA, aims to expedite the commercialization of innovative off-grid clean energy solutions through early-stage grant funding. This initiative empowers businesses to design, create, and pilot novel products, business models, and systems, cultivating a more robust and dynamic renewable energy sector.
PACEsetter Fund: A Joint Venture Between India and the USA
In 2015, a unique collaboration between India and the United States emerged to bolster the renewable energy industry, named the PACEsetter Fund. The fund’s sole purpose is to provide early-stage grant funding, which would stimulate businesses to develop and test innovative off-grid clean energy access solutions. This accelerated approach to product refinement and market readiness enables businesses to lean into advancements and innovation, pushing the boundaries of what’s possible for renewable energy technologies.
The Mission of PACEsetter Fund
An integral part of the PACEsetter fund’s commitment is to speed up the commercialization of ground-breaking off-grid clean energy access solutions. By rapidly funneling funds into the initial stage of such projects, the fund acts as a catalyst, accelerating the pace of research, development, and deployment of new technologies. Notably, it focuses on improving the viability of off-grid renewable energy businesses that sell small-scale clean energy systems, typically less than 1 megawatt. This targeted output caters primarily to individuals and communities who lack access to grid-connected power or have only limited or intermittent access.
Sourcing Funds and Improving Energy Access
The fund seeks to fill a critical gap in the development of early-stage, minigrid, and off-grid clean energy projects. The modest scale of these projects often hampers access to funding, either due to insufficient project size to attract traditional infrastructure investment or the perceived high risk associated with innovative technologies. The PACEsetter fund is aimed precisely to buffer this financial challenge, enabling fledgling projects to take off and potentially transform the energy landscape.
Benefits of the PACEsetter Fund
| Benefit | Description |
|---|---|
| Supporting innovation | The fund acts as a catalyst for innovation in clean energy access solutions. It supports efforts to develop and test new products, business models and systems. |
| Energy accessibility | By focusing on small-scale clean energy systems, the fund helps to enhance energy access for individuals and communities without reliable access to grid-connected power. |
| Filling the funding gap | The fund provides crucial financial support for early-stage, minigrid and off-grid clean energy projects that might struggle to attract traditional investment. |
| Improving viability | The fund specifically supports the viability of off-grid renewable energy businesses, fostering a more robust renewable energy sector. |
Recognition and Awards of the PACEsetter Fund Programme
The Ministry of New and Renewable Energy recently celebrated the awardees of the second round of the PACEsetter fund programme. These winners not only represent the innovative excellence in the field of renewable energy but they also embody the spirit of cross-border collaboration in pursuit of a greener future. As the fund continues to channel resources towards new technologies and their commercialization, it is set to create a lasting impact on the renewable energy sector.