ADB Eyes to Invest $50 Million in Avaada Energy for Expansion of Solar Projects in India
Published Date | 2019 March 26
The ADB investment in Avaada will enable the company to expand its renewable energy capacity; will positively influence the solar energy market over the coming years
India: Asian Development Bank (ADB) has signed an agreement to invest US$ 50 million in solar power project developer Avaada Energy to help the company scale up photovoltaic solar energy generation capacity in India. Avaada has secured power purchase agreements of about 1.7 GW. With the current equity investment, it is well funded to surpass the capacity of 2 GW. The investment in Avaada will show a positive signal to global investors to continue supporting the growth of renewable energy in India. The investment in Avaada will come equally from ADB’s Ordinary Capital Resources and Leading Asia’s Private Infrastructure Fund (LEAP). LEAP is a funding arrangement provided by the Japan International Cooperation Agency, which is also administered by ADB. The project will contribute to the Indian Government’s goal of increasing the share of renewable energy generation capacity from about 20% in 2018 to 40% by 2030. It will also help to reduce India’s emission intensity of its GDP by 33-35% by 2030. According to BlueWeave Consulting, The global solar energy industry is expected to grow with a promising growth rate over the coming years. The recent investments by global financial giants reinforce India’s prominence in the global clean energy sector. The solar energy industry is rapidly growing worldwide and renewable energies are the best solution for sustainable development of the planet, especially in developing countries. The growth of the solar energy industry is driven by an increase in environmental pollution and provision of government incentives & tax rebates to install solar panels. Moreover, the decrease in water footprint associated with solar energy systems has fueled the demand in power generation sectors. Also, the demand for solar cells has gained major traction owing to a surge in rooftop installations, followed by an increase in applications in the architectural sector. Furthermore, the demand for parabolic troughs and solar power towers in electricity generation is expected to boost the growth of the market of concentrated solar power systems. It is highly preferred due to an efficient form of unconventional energy and a convenient renewable solution toward growing greenhouse emissions and global warming. It is being increasingly used in the commercial, industrial, as well as residential sectors. In addition, the increasing investments in renewable energy owing to the rising environmental concerns regarding the greenhouse gases (GHG) emissions are driving the global solar energy market over the forecast period. According to BlueWeave consulting’s upcoming report, Titled-“ Global Solar Energy Market, by Technology (Photovoltaic Cells, Concentrated Solar Power Systems), Solar Module (Monocrystalline, Polycrystalline, Cadmium Telluride, Amorphous Silicon Cells, and Others), Generation (First, Second, and Third), and Application (Agriculture & Horticulture, Architecture, Transportation, and Others), By Region (North America, Europe, Asia Pacific, Latin America, Middle East And Africa); Size and Forecast, 2019-2025” – For many years solar was considered as the main pillar of a future renewable energy based system. Demand for a solar panel is increasing prominently all over the world. North America market for solar panels has been growing rapidly especially due to the growth of residential solar applications in the U.S Global solar panels market is characterized by improving conversion efficiency by key market participants. Key companies operating in this market include Suntech, Sharp Solar, First Solar, Trina Solar, Yingli, Hanwha Solarone, Canadian Solar, SunPower, SolarWorld, and Renewable Energy Corporation. According to BlueWeave Consulting’s upcoming report, Titled- “India Solar Energy Market, by Technology (Photovoltaic Cells, Concentrated Solar Power Systems), Solar Module (Monocrystalline, Polycrystalline, Cadmium Telluride, Amorphous Silicon Cells, and Others), Generation (First, Second, and Third), and Application (Agriculture & Horticulture, Architecture, Transportation, and Others), By Region (North, West, East & South); Size and Forecast, 2019-2025”– The India solar energy market is estimated to have high growth over a forecasted period due to rising focus of the government towards sustainable energy generation, availability of abundant sunshine throughout the year makes the country an ideal location for solar power generation. Rapid population growth and increasing urbanization and industrialization is driving demand for energy, traditionally met by coal and crude oil.