Asian Development Bank (ADB) Tuesday said it has inked an agreement to invest USD 50 million in solar energy project developer Avaada Energy Pvt Ltd to help the company scale up rapidly.
LEAP is a funding arrangement provided by Japan International Cooperation Agency (JICA) which is administered by ADB.
The agreement was signed Tuesday 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 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.
"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 USD 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 capacity of 2 gigawatts, ADB said.
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