CDC Group, UK based development finance institution has invested EUR10 million to setup an Asian renewable energy fund called Berkeley Energy’s Renewable Energy Asia Fund (“REAF”).
The fund, called the Berkeley Energy’s Renewable Energy Asia Fund, will make investments between EUR4 million and EUR15 million into development stage renewable energy projects and technology in wind, small hydro, biomass and solar power.
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.
50% of India’s electricity is currently being generated by coal, a quarter by hydro power and around 10% by gas. As electricity demand outstrips supply there is huge potential for renewable energy, yet estimates suggest only 5% of India’s renewable resources are currently being exploited.
CDC has committed its capital alongside five other experienced emerging market investors, allowing REAF to raise €50.7m for future investments in green energy. REAF will use the capital it has raised to make equity investments of between €5m and €15m in development stage renewable energy projects and technology, with a focus on wind, small hydro, biomass and solar power.[details]