The Asian Development Bank (ADB) is going to help develop clean energy projects in Asia including India. With an initial seed capital of $100 million, ADB will help establish five private sector funds, which are expected to invest around $1.2 billion in such projects across Asia.
The funds – MAP Clean Energy Fund, China Environment Fund III, GEF South Asia Clean Energy Fund, Asia Clean Energy Fund, and China Clean Energy Capital – will each receive up to $20 million in capital from ADB.
GEF South Asia Clean Energy Fund has a target size of $200 million and will make around 12 investments across South Asia in companies and projects that promote the use of efficient and cleaner forms of energy in Bangladesh, India, Nepal, Pakistan, and Sri Lanka. The fund is jointly sponsored by India’s Yes Bank and an international private equity firm, Global Environment Fund.
The MAP Clean Energy Fund is also aiming to invest in India in wind and bio-ethanol projects with no competition for food crops.
“ADB believes the success of these funds will help demonstrate the credibility of private equity in the emerging clean energy sector in developing Asia, and mobilise capital to support other private equity funds,” an ADB official said in a press statement.
By 2030, global energy demand is expected to rise 53% from current levels, the largest potion of it coming from developing Asia. The energy investment in Asia is strongly carbon-intensive power generation. “Significant resources need to be invested into clean energy and low-carbon investment alternatives over the next few decades,” the official added.
Source: Business Standard