The Asian Development Bank (ADB) today signed a joint venture agreement with India’s NTPC Ltd. and Kyushu Electric Power Company of Japan to develop and operate 500 megawatts of renewable energy projects in India in the next three years.
India is the third largest electricity consumer in Asia, after the People’s Republic of China and Japan, and demand has grown at an average of 8% a year since 1995.
“The new joint venture company will help India achieve its goal of reducing the country’s dependence on fossil fuels, will cut greenhouse gas emissions and improve its energy security,” said Michael Barrow, Director in ADB’s Private Sector Operations Department (PSOD), who signed the agreement in New Delhi. “We hope this company will also provide an example to other foreign investors looking at India’s renewable energy sector.”
“India now has the capacity to generate just over 11,000 megawatts of wind power, but, with the right investment, that could increase to almost 48,000 megawatts. At the same time, small hydropower has the potential to generate about 15,000 megawatts of power and, what’s more, is often the best way of providing electricity to low-income households in remote areas,” said Don Purka, Senior Investment Specialist with ADB’s PSOD.
Under the joint venture agreement, ADB will invest up to 40 million dollars for a 25 percent stake in the company. The move is part of ADB’s goal of investing two billion dollars a year in renewable energy and energy efficiency projects in Asia and the Pacific to help put the region on a sustainable development path. NTPC will have a 50 percent holding in the company with Kyushu Electric Power owning the remaining 25 percent.