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The Asian Development Bank (ADB) will invest $15 million in Avaada Energy Private Limited (AEPL) to help the company to scale up photovoltaic solar energy generation capacity in India.

The investment is ADB’s second in AEPL after a first round of $50 million made in April 2019.

ADB is investing the $15 million via its Ordinary Capital Resources and from Leading Asia’s Private Infrastructure Fund (LEAP).

AEPL has almost 1GW of operational solar energy capacity, and with the second round of equity investment will be well placed to expand capacity to more than 3.5GW.

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The project will contribute to the Government of India’s strategy to increase the share of renewable energy generation capacity from about 20% in 2018 to 40% by 2030.  It reflects ADB’s commitment to provide cumulative climate finance of $80 billion from 2019 to 2030.

ADB’s Private Sector Operations Department Shantanu Chakraborty, said: “The project is part of ADB’s ongoing support to India’s renewable energy sector and will help the Government of India meet its targets for clean power generation.

“We are pleased to enhance our commitment in AEPL and expect this investment to send positive signals to global investors to continue supporting the growth of renewable energy in India.”

Director of Infrastructure Finance, South Asia, Central Asia, and West Asia and Chair of AEPL, Vineet Mittal, adds: “ADB’s investment reinforces the strong support of international development community to India’s efforts at ramping up its clean energy generation.

“It also validates AEPL’s strong track record and commitment to create cleaner and more sustainable power generation in India.”