{"id":2031,"date":"2013-05-14T13:12:26","date_gmt":"2013-05-14T18:12:26","guid":{"rendered":"http:\/\/blogs.law.columbia.edu\/climatechange\/?p=2031"},"modified":"2013-05-14T13:12:26","modified_gmt":"2013-05-14T18:12:26","slug":"completion-of-the-clean-energy-investment-u-s-india-project","status":"publish","type":"post","link":"https:\/\/blogs.law.columbia.edu\/climatechange\/2013\/05\/14\/completion-of-the-clean-energy-investment-u-s-india-project\/","title":{"rendered":"Completion of the Clean Energy Investment U.S. \u2013 India Project"},"content":{"rendered":"
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The Center for Climate Change Law has completed the Clean Energy Investment US-India Project. The project aimed to ease the path for U.S. investors and solar and other renewable energy equipment manufacturers to access the Indian market. So far, investment in this expanding market has been limited by high transaction costs. Funded by a generous grant by the Sujana Group<\/a>, directed by Aarthi Anand, and with the assistance of experienced lawyers, bankers and industrial corporations<\/a> in both the U.S. and India, the project has drafted and made available for free download the suite of documents needed for a corporation to put up a power plant and obtain necessary finance. By preparing these contract templates and making them freely available, the project hopes to have reduced the prohibitive transaction costs that had limited U.S. investment in renewable energy projects in India.<\/p>\n

Background to the Project<\/span><\/p>\n

Investment in Indian clean energy projects can potentially earn high returns for U.S. investors, lower greenhouse gas emissions and decrease production costs for Indian companies. The burgeoning Indian energy market is estimated at $1.1 trillion by McKinsey, with an estimated potential of reducing 2.8-3.6 billion tonnes of GHG, if it can access the needed finance. Of the $1.1 trillion, it is believed that $333 billion are financially attractive projects, in the sense that they have a positive internal rate of return.<\/p>\n

Investment Structure Proposed<\/span><\/p>\n

The Project has developed a Quasi-Project Finance Model for financing clean energy investment in India.\u00a0 The proposed model follows non-recourse finance, along the lines of standard project finance.\u00a0 Lenders will work with an Indian Corporate Sponsor and form a Project Special Purpose Vehicle (\u201cProject SPV\u201d), for financing the captive or independent power project. The details of the proposed structure include:<\/p>\n