The Asian Development Bank (ADB) has made an equity investment of $50 million (£29.2m) in a renewable energy company in India.
It will help finance a number of ReNew Power Ventures’ wind projects, which will have a total capacity of 1,000MW.
India currently relies on expensive coal and liquefied natural gas imports, according to the ADB. The share of renewable energy in the nation’s energy mix is said to have dropped from 44% in 1970 to 31% in 2011.
Siddhartha Shah, ADB’s Principal Investment Specialist said: “ADB’s investment is a signal to private sector companies that India’s renewables sector is ripe for further investment.”
The energy firm’s majority shareholder is the private equity arm of Goldman Sachs Group.