The multi-lateral funding agency said the investment contributes to ADB’s goal to provide cumulative climate finance of $80 billion from 2019 to 2030.
The Manila based Asian Development Bank (ADB) announced that it has inked an agreement to invest $50 million in solar energy project developer Avaada Energy Pvt Ltd to help the company scale up rapidly. The investment will come equally from ADB’s Ordinary Capital Resources and Leading Asia’s Private Infrastructure Fund (LEAP).
LEAP is a funding arrangement provided by the Japan International Cooperation Agency (JICA) which is administered by ADB.
The agreement was signed by Chair of AEPL Vineet Mittal and ADB Principal Investment Specialist Mayank Choudhary, ADB said in a release.
“Supporting renewable energy capacity enhancement by way of debt and equity is a key focus area of ADB’s private sector strategy,” said Choudhary. 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 funding comes at time when the broader industry has flagged funding and financing innovations as the biggest challenge to continued growth. So much so that even the government target of 100GW solar by 2022 is at risk now, according to most industry observers and research agencies.
“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 said.
The Manila-headquartered multi-lateral funding agency said the investment contributes to ADB’s goal to provide cumulative climate finance of $ 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.
The company has secured power purchase agreements of about 1,700 megawatts. With the current equity investment, the company is well funded to exceed the capacity of 2 gigawatts, ADB said.