ADB to Invest $50 Million in Avaada Energy Private Limited to Expand Renewable Energy Capacity in India

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 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 MW. With the current equity investment, the company is well funded to exceed capacity of 2 GW.