India and the UK have defined energy efficiency and deployment of renewable energy as priority areas under the Memorandum of Understanding on Cooperation in the Energy Sector.
The MoU was signed during the visit of Prime Minister Narendra Modi to the UK earlier.
This Green Growth Equity Fund will have both two countries anchor an investment up to £120 million each in the joint fund which aims to raise around £500 million.
The agreed areas include innovation in smart technology to improve performance and reduce losses in India’s power sector; support for increased energy efficiency; enhanced energy access; work to accelerate deployment of renewable energy and its integration with the grid; financing for clean energy; decentralised energy scale up and sustainability; and support to States in renewable energy planning and deployment.
It was also announced that India’s public sector undertaking, Energy Efficiency Services Ltd has established operations in the UK by investing around £7 million in seven energy saving projects.