Energy cooperation between the United States and India has evolved from a polite diplomatic footnote into one of the most consequential bilateral relationships of the twenty first century and from an Indian perspective it is no longer merely desirable but indispensable. At the heart of this partnership lie three intertwined strands: the explosive growth of renewable energy collaboration, the strategic embrace of American liquefied natural gas as a bridge fuel and the shared yet asymmetrically burdened pursuit of climate goals. For India, a nation that must lift hundreds of millions into modern prosperity while facing the brutal realities of climate change, this cooperation is not charity or concession but a hard-headed alignment of self-interest that allows New Delhi to reconcile its developmental imperatives with its global responsibilities.
The renewable energy story is the brightest thread in this tapestry. India has already installed more than 200 gigawatts of non-fossil capacity by the end of 2025, a figure that would have seemed fantastical even a decade ago and American technology, finance and policy support have been quietly indispensable to that achievement. Whether through the early risk sharing loans of the U.S. Export-Import Bank that seeded Gujarat’s solar parks, the joint research under the Partnership to Advance Clean Energy that brought down the cost of battery storage or the more recent commitments under the Strategic Clean Energy Partnership that are funding grid-scale pumped hydro and green hydrogen pilots in Rajasthan and Tamil Nadu, the United States has consistently appeared as a partner that understands India’s need for speed and scale. When the International Solar Alliance moved from vision to headquarters in Gurugram, American membership and technical contributions signalled that Washington saw India not as a recipient of climate aid but as a co-architect of the global energy transition. The 2025 groundbreaking of the ACME Group’s integrated solar to green ammonia facility in Texas, with its assured offtake for Indian fertiliser and refining industries, perfectly illustrates the maturing reciprocity: Indian entrepreneurial ambition meeting American project finance and land availability to create a clean molecule corridor across the Pacific.
Yet no honest Indian assessment can pretend that renewables alone will meet the country’s voracious energy appetite in the coming two decades. Coal still supplies roughly seventy percent of electricity generation and even the most optimistic scenarios show it retaining a substantial share until at least 2040. This is where American Liquefied Natural Gas has emerged as the unlikely hero of India’s energy security narrative. From near zero imports in 2017, the United States now routinely ranks among India’s top three suppliers of liquefied natural gas, often overtaking traditional West Asian partners during periods of tight global supply. The numbers tell a compelling story: in the fiscal year 2024-25, India imported close to ten million tonnes of American Liquefied Natural Gas, a volume that displaced dirtier coal in power plants and heavier fuel oil in industries while simultaneously helping narrow India’s trade deficit with the United States. The first structured long-term LPG contract signed in November 2025, covering more than two million tonnes annually, marks the transition from opportunistic spot purchases to strategic partnership. For Indian planners, American Liquefied Natural Gas offers three priceless advantages: diversification away from choke point vulnerable Middle Eastern routes, relatively lower methane leakage compared to some other suppliers and the comforting knowledge tha…
Energy Co-Operation Between the US and India: Renewable Energy, Liquefied Natural Gas & Climate Goals
