Asian Development Bank (ADB) has signed an agreement to invest US$ 50 million in solar power project developer Avaada Energy to help the company scale up rapidly. Avaada has secured power purchase agreements of about 1.7 GW. With the current equity investment, it is well funded to exceed capacity of 2 GW.
The investment in Avaada will come equally from ADB’s Ordinary Capital Resources and Leading Asia’s Private Infrastructure Fund (LEAP)–a funding arrangement provided by Japan International Cooperation Agency (JICA) that is administered by ADB, Economic Times quoted from a PTI report.
The agreement was signed by Avaada Energy chairman Vineet Mittal and ADB Principal Investment Specialist Mayank Choudhary.
“Supporting renewable energy capacity enhancement by way of debt and equity is a key focus area of ADB’s private sector strategy,” said Choudhary in the PTI report.
He said the investment in Avaada will enable the company to expand its renewable energy capacity and send positive signals to global investors to continue supporting the growth of renewable energy in India.
The project will contribute to the strategy of the government to increase the share of renewable energy generation capacity from about 20% in 2018 to 40% by 2030. It will also help to reduce India’s emission intensity of its gross domestic product by 33-35% by 2030.
“These recent investments by global financial giants reinforce India’s prominence in the global clean energy sector. This investment by ADB validates Avaada’s execution track record and commitment in creating a cleaner and sustainable India,” Mittal was quoted as saying by PTI.
The Manila-headquartered multi-lateral funding agency said the investment contributes to ADB’s goal to provide cumulative climate finance of US$ 80 billion from 2019 to 2030.
Operational since 2017, AEPL is a developer of solar energy projects in India offering clean energy products, including utility scale, rooftop, and off-grid solar projects.