NEW DELHI, INDIA (20 March 2019) — The Asian Development Bank (ADB) has signed an agreement to invest $50 million in Avaada Energy Private Limited (AEPL) to help the company rapidly scale up photovoltaic solar energy generation capacity in India. The investment will come equally from ADB’s Ordinary Capital Resources and Leading Asia’s Private Sector Infrastructure Fund (LEAP). LEAP is a funding arrangement provided by Japan International Cooperation Agency, which is administered by ADB.
The agreement was signed today by Chair of AEPL Mr. Vineet Mittal and ADB Principal Investment Specialist Mr. 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 Mr. Choudhary. “We are pleased to invest in Avaada, which will enable it 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 of India to increase the share of renewable energy generation capacity from about 20% in 2018 to 40% by 2030, and help reduce India’s emission intensity of its gross domestic product by 33% to 35% by 2030. It also contributes to ADB’s goal to provide cumulative climate finance of $80 billion from 2019 to 2030.
Operational since 2017, AEPL is a leading 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 capacity of 2 gigawatts.
“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,” said Mr. Mittal.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. In 2018, it made commitments of new loans and grants amounting to $21.6 billion. Established in 1966, it is owned by 68 members—49 from the region.