Asian Development Bank invests $50 million in Avada Energy

The Asian Development Bank (ADB) is investing $50 million in Avaada Energy Private Limited (AEPL) to upscale its photovoltaic solar energy generation capacity in India. The investment is coming 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.

ADB Principal Investment Specialist, Mayank Choudhary, said, “Supporting renewable energy capacity enhancement by way of debt and equity is a key focus area of ADB’s private sector strategy. 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 20% in 2018 to 40% by 2030. It will also help reduce India’s emission intensity of its gross domestic product by 35% by 2030.

AEPL is a leading developer of solar energy projects in India since 2017 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 Vineet Mittal, Chair of AEPL.

AZB & Partners’ team led by Delhi Partners, Gautam Saha and Heena Singh along with Associate Nikhil Bahl acted for ADB.

Indian Law Partners’ team led by Partners Gopika Pant and Vineet Gupta, Senior Associate Abhimanyu Kaul and Associate Ira Swain advised Avaada Energy.