India, the fourth-largest consumer of energy worldwide, is showing the rest of the world how to eradicate energy poverty by looking skyward towards the sun.

A recent USAID announcement plans to invest $100 million towards renewable energy in India, which, coupled with the country’s National Action Plan on Climate Change, will make a solid dent in shrinking India’s energy gap.

The announcement came as U.S. Secretary of State, John Kerry, visited India for the first time. During a speech, Secretary Kerry urged Indian officials to cut greenhouse gas emissions while simultaneously maintaining its commitment to end poverty. Mr. Kerry stated, “The worst consequences of the climate crisis will confront people who are the least able to be able to cope with them.”

Energy poverty in India is a major concern–over 300 million people function off the grid and another 700 million rely on sporadic service. The blackout that occurred in northern India in July 2012, which darkened the country for two days and disrupted service for 620 million people (nine percent of the world’s population), underscored this reality. Policymakers took note.

As a result, the Indian government is intensely pursuing a diverse portfolio of sustainable energy options, with the primary focus on solar power.

The government’s primary solar initiative, known as “Solar India,” aims to commission 20,000 megawatts of grid-connected solar power projects by 2022. Considering the current installed capacity for solar energy in India is just below 1,700 megawatts, this is an ambitious plan.

The $100 million USAID investment marks the first time USAID is partnering with a private investment fund, Nereus Capital’s India Alternative Energy Fund, to facilitate an investment. One of the expressed goals of the investment is to make India more attractive to U.S. energy entrepreneurs by lowering the barriers to entry and building the infrastructure needed to get started.

The investment could create as much as 300-400 additional megawatts of new energy capacity. Three to four hundred additional megawatts might not sound like a lot considering that India’s carbon emissions are projected to increase 60 percent by 2030, but every little bit helps. Each new megawatt of sustainable energy generated represents a seismic shift towards an India where energy availability for all of its citizens is the rule, not the exception.

With pressure coming from the U.S. Department of State and the timely announcement of the USAID investment, the time for India’s energy sector to expand its use of clean energy is now.

– Aaron Faust

Sources: USAID, Center for Climate Energy Solutions, NY Times, Jawaharlal Nehru National Solar Mission, International Finance Corporation