Green Investing in India – ADB forms JV with NTPC and Japanese Kyuden to develop 500 MW of Renewable Energy

Asian Development Bank (ADB) has planned $2 Billion in Annual Green Investments in power hungry countries of Asia.For this the multilateral institution has sold multi-currency bonds in Japan to populate its Renewable Energy Fund.Note Green Energy is a capital intensive business and requires large amounts of low  cost capital which is difficult to get in developing emerging markets of Asia.ADB is meeting this intermediary gap of funneling low interest capital from developed markets like Japan to capital deficient countries like India.Note ADB is already financing Asia’s largest solar photovoltaic plant in Thailand.

India has a huge demand for power and is already heavily deficient in electricity.India requires almsot 5 GW of annual renewable energy capacity to meet its 15% RPS by 2020.NTPC which is India’s largest electricity utility has tied up with ADB and Japan’s Utility Kyuden Intl. to set up 500 MW of Renewable Energy Capacity in the next 3 years.The JV will be formed in the 50:25:25 ratio with NTPC the majority equity holder.India’s State Owned Energy Companies and Utilities have already made ambitious plans for setting up Green Energy Plants in the country.NTPC has set a target of 301 MW of Solar Energy generation by 2014 taking advantage of the Solar Subsidy offered under India’s JNNSM.