ADB invests $100m for decarbonisation of India’s commercial, industrial sector

This will encourage the building of more solar capacity.

The Asian Development Bank (ADB) has signed a $100m equity investment with independent power producer Fourth Partner Energy Private Limited to decarbonise India’s commercial and industrial sector through utility-scale solar, solar-wind hybrid and rooftop solar power projects.

In a statement, ADB said the financing includes $70 million from its ordinary capital resources and $30 million from Leading Asia’s Private Infrastructure Fund 2. Deutsche Investitions- und Entwicklungsgesellschaft and the International Finance Corporation are joint investors.

"ADB's investment will support the clean energy transition by encouraging domestic and international lenders to engage with independent power producers in this sector,” said ADB Director General for Private Sector Operations Suzanne Gaboury.

The project will also accelerate the decarbonisation of commercial and industrial companies with high energy requirements and transition them to renewable energy, both in India and select Southeast Asian countries where the company has operations, ADB said.

In July, ADBapproved a $240.5m loan to boost the rooftop solar systems in India, helping the country expand energy access and achieve its target of about 50% of cumulative electric power installed capacity from non fossil fuel energy sources by 2030.