The PACEsetter fund was constituted by India and the USA in 2015 as a joint fund to provide early-stage grant funding to accelerate the commercialization of innovative off-grid clean energy products, systems, and business models.
The mission of the PACEsetter Fund is to accelerate the commercialization of innovative off-grid clean energy access solutions by providing early-stage grant funding that would allow businesses to develop and test innovative products, business models and systems. The Fund's main purpose is to improve the viability of off-grid renewable energy businesses that sell small scale (under 1 megawatt) clean energy systems to individuals and communities without access to grid connected power or with limited or intermittent access. (less than 8 hours per day).
Energy access is crucial for improving the quality of life and economic conditions, and 24/7 energy availability remains a priority for the Indian government. Off-grid, clean energy technologies, combined with innovative financing models, market-based solutions, and policy alignment, have tremendous potential to become a transformative agent of economic opportunity and rural development.
In 2013, the Governments of the Republic of India and the United States of America launched Promoting Energy Access through Clean Energy (PEACE) as a new track under the U.S.-India Partnership to Advance Clean Energy (PACE), alongside the existing research (PACE-R) and deployment (PACE-D) tracks. PEACE aims to harness commercial enterprise to bring clean energy to individuals and communities un-served and underserved by the electricity grid.
In June 2015, the governments established the PACEsetter Fund (PSF), a new joint fund to support the PEACE initiative by providing early-stage grant funding to accelerate the commercialization of innovative off-grid clean energy products, systems, and business models.
In the first round, nine projects were supported.
In the second round of awards, a total of 168 Expressions of Interest were received. Out of these, four projects were selected for award of grants. The awardees include Society for Economic and Social Studies, New Delhi, Customized Energy Solutions India Pvt. Ltd., Pune, The Energy & Resources Institute (TERI), New Delhi and RaghavendraSuntech Systems Pvt Ltd (RSSPL), Bengaluru.