The project will contribute to increase the share of renewable energy generation capacity from about 20 per cent in 2018 to 40 per cent by 2030
Recently Asian Development Bank (ADB) has signed an agreement with solar power project developer Avaada Energy to invest US$ 50 million to help the company. Avaada has secured power purchase agreements of about 1.7 GW and with the current equity investment, it can exceed the capacity of 2 GW.
As per the report,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.
The project will contribute to the strategy of the government to increase the share of renewable energy generation capacity from about 20 per cent in 2018 to 40 per cent by 2030. It will also help to reduce India’s emission intensity of its gross domestic product by 33-35 per cent by 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 agreement was signed by Avaada Energy chairman Vineet Mittal and ADB Principal Investment Specialist Mayank Choudhary.
Choudhary has said that supporting renewable energy capacity enhancement by way of debt and equity is a key focus area of ADB’s private sector strategy.
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.