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CDC invests EUR10m in Asian renewable energy fund

The UK’s development finance institution, CDC Group, has committed EUR10m to an investment fund that will back renewable energy projects in India and other developing countries in Asia. 

CDC’s financial commitment to Berkeley Energy’s Renewable Energy Asia Fund will support the fund’s investments in private sector companies aiming to tap into the growing demand for clean energy infrastructure in Asia.
 
CDC has committed its capital alongside five other experienced emerging market investors, allowing the fund to raise EUR50.7m for future investments in green energy.

The fund will use the capital to make equity investments of between EUR5m and EUR15m in development stage renewable energy projects and technology, with a focus on wind, small hydro, biomass and solar power.
 
CDC managing director Hywel Rees-Jones says: “In the week that world leaders meet in Copenhagen to focus on climate change reductions in both developed and developing countries, I am pleased that CDC is able to invest in a fund committed to private sector investments in green, sustainable energy supply.
 
“We’re backing this first-time fund because we know that the growing demand for electricity in India and other developing Asian economies and their historic underinvestment in renewable technology means that REAF has a real opportunity for commercial success. This is a real chance to boost the viability of renewable energy within the private sector in India.”
 
Fifty per cent of India’s electricity is currently being generated by coal, a quarter by hydro power and around ten per cent by gas. As electricity demand outstrips supply there is huge potential for renewable energy, yet estimates suggest only five per cent of India’s renewable resources are currently being exploited.
 
Berkeley Energy is a private equity fund manager specialising in renewable energy infrastructure investments in developing economies, particularly in Asia.

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