<article>The <a href="https://www.dealstreetasia.com/?s=Asian Development Bank (ADB)" target="_blank" rel="noopener noreferrer">Asian Development Bank (ADB)</a> has signed an agreement to invest $50 million in <a href="https://www.dealstreetasia.com/?s=Avaada Energy Pvt Ltd (AEPL)" target="_blank" rel="noopener noreferrer">Avaada Energy Pvt Ltd (AEPL)</a> to help the company scale up photovoltaic solar energy generation capacity in India.</article>

The <a href="https://www.dealstreetasia.com/?s=Asian Development Bank (ADB)" target="_blank" rel="noopener noreferrer">Asian Development Bank (ADB)</a> has signed an agreement to invest $50 million in <a href="https://www.dealstreetasia.com/?s=Avaada Energy Pvt Ltd (AEPL)" target="_blank" rel="noopener noreferrer">Avaada Energy Pvt Ltd (AEPL)</a> to help the company scale up photovoltaic solar energy generation capacity in India.
The investment will come from ADB’s Ordinary Capital Resources and Leading Asia’s Private Sector Infrastructure Fund (LEAP), an ADB statement dated 20 March said.
LEAP is a funding arrangement provided by the Japan International Cooperation Agency, which is administered by ADB.
&#8220;Supporting renewable energy capacity enhancement by way of debt and equity is a key focus area of ADB’s private sector strategy,&#8221; said ADB principal investment specialist Mayank Choudhary.
The investment in Avaada will send a positive signal to global investors to continue supporting the growth of renewable energy in India, he added.
AEPL was founded by former Welspun Renewables Energy head Vineet Mittal in 2017. The company develops solar energy projects in India, including utility-scale, rooftop, and off-grid projects. It has secured power purchase agreements of about 1,700 MW. With the current equity investment, the company is well funded to exceed a capacity of 2 GW, the statement said.
The project will contribute to the Indian government&#8217;s goal of increasing the share of renewable energy generation capacity from about 20 per cent in 2018 to 40 per cent by 2030, and help reduce the country&#8217;s emission intensity of its GDP by 33-35 per cent by 2030, it added.
Manila-headquartered ADB said that the investment in Avaada is part of its goal of providing cumulative climate finance of $80 billion from 2019 to 2030. In 2018, it made commitments of new loans and grants amounting to $21.6 billion. The development bank has 68 member nations, of which 49 are from the Asia-Pacific.
The Indian renewables energy sector has been attracting strong investor interest globally.
According to data released by the Department of Industrial Policy and Promotion (DIPP), more than $42 billion has been invested in India’s renewable energy sector since 2014. In the first half of 2018, investments in clean energy in India had reached $7.4 billion.
In January, Mint reported that Hero Future Energies Pvt. Ltd is in talks to acquire Fotowatio Renewable Ventures’s 135 MW solar power project in India. According to another Mint report, Malaysia’s state-owned oil and gas company Petroliam Nasional Berhad is in talks with New York-based I Squared Capital to buy a majority stake in Amplus Energy Solutions Pvt. Ltd, one of India’s largest rooftop solar power producers.
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ADB signed agreement to invest $50 million in Avaada Energy Pvt Ltd to help the company scale up photovoltaic solar energy generation capacity in India.

Asian Development Bank to invest $50m in India's Avaada Energy

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Asian Development Bank to invest $50m in India's Avaada Energy

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