COLOGNE, May 27 (Reuters) – Carbon asset management firm First Climate plans to launch a 200 million euro ($245.6 million) equity fund to invest in clean energy projects in India, China and Southeast Asia, the firm said on Thursday.
The Asia Clean Energy Fund is scheduled to launch in the third quarter with a target first soft close in the second quarter of 2011, First Climate said.
The new fund is part of the firm’s drive to invest equity in projects, focusing on investment returns rather than just securing the carbon credits generated by those projects, it said.
The company will follow the fund’s close with similar funds for other emerging markets, it added.
“Renewable energy is the new infrastructure asset and Asia offers significant opportunities for investors,” said Sudhir Bhat, director of project finance at First Climate.
“There is no option of parachuting into this market. Local presence, knowledge, and relationship building is critical for any successful investment in Asia.”
A number of new Solar PV and Solar thermal power projects are being launched under the first phase of the JNNSM in addition to the off grid solar PV applications. There has been an emergence of independent IPP’s in wind energy like CLP Power and India Energy and a number of large captive wind farms apart in the last couple of years. About 150MW of grid connected agro-residue biomass projects has been added in FY 2009-10.
With these kind of additions, the renewable energy space in India seems to be catching the attention of funds after the huge investments in the traditional power generation companies. The eco-system is also rapidly evolving with a number of new entrants providing turnkey EPC solutions in solar and wind to new developers providing various opportunities for investments in the renewable and cleantech space in India.