The Asian Development Bank (ADB) has signed an agreement to invest $15 million in INR equivalent in Avaada Energy (AEPL) to help the company to scale up photovoltaic solar energy generation capacity in India.
This is ADB’s second investment in AEPL after a first round of $50 million invested in April 2019. The latest investment will come from ADB’s Ordinary Capital Resources and from Leading Asia’s Private Infrastructure Fund (LEAP), each of which will invest $7.5 million. LEAP was established in 2016 by the Japan International Cooperation Agency to finance high quality and sustainable private sector infrastructure projects.
The agreement was signed by the Director of Infrastructure Finance, South Asia, Central Asia, and West Asia at ADB’s Private Sector Operations Department Shantanu Chakraborty and Chair of AEPL Vineet Mittal.
“The project is part of ADB’s ongoing support to India’s renewable energy sector and will help the Government of India meet its targets for clean power generation,” said Chakraborty. “We are pleased to enhance our commitment in AEPL and expect this investment to send positive signals to global investors to continue supporting the growth of renewable energy in India.”
“ADB’s investment reinforces the strong support of international development community to India’s efforts at ramping up its clean energy generation,” said Mittal. “It also validates AEPL’s strong track record and commitment to create cleaner and more sustainable power generation in India.”
The project will contribute to the Government of India’s strategy to increase the share of renewable energy generation capacity from about 20% in 2018 to 40% by 2030. It reflects ADB’s commitment to provide cumulative climate finance of $80 billion from 2019 to 2030.