New Delhi, India, September 10, 2012—
IFC, a member of the World Bank Group, is investing $20 million in Nereus India Alternative Energy Fund, India’s first dedicated renewable energy fund that will promote the development and use of clean and renewable energy technologies, helping reduce the country’s growing carbon footprint.
The investment will help the fund provide growth capital to small and medium companies that develop, construct, and operate renewable and clean energy power generation assets, or deploy clean energy technologies in India. The project will help to address the country’s chronic power shortfall through distributed renewable generation, which is more economical and reliable than grid power.
“Nereus is trying to back companies with scalable business models in clean energy that address the challenges of huge deficit and high electricity costs in the Indian power market,” said Jonathan Winer, Founder and Managing Director of Nereus Capital, which is managing the fund. “IFC’s expertise in the renewable energy sector would help to increase the impact of the project.”
An estimated 38 percent of India’s population lacks access to electricity. At any given time the country also grapples with a power shortfall of 8.5 percent, which escalates during peak hours. With the demand for power expected to grow five times by 2030, the situation calls for action that renewable energy can provide cost-effectively.
“There is an urgent need for alternative energy infrastructure to meet India’s power demand,” said Thomas Davenport, Director for IFC, South Asia. “The fund is targeting renewable energy with significant environmental impact for the first time in the country, helping build support for its widespread adoption.”
IFC's global program regularly invests in funds focused on mitigating climate change in the areas of renewable energy, clean technology, and resource efficiency across the emerging markets. Clean energy is a global strategic priority for IFC, which has led several innovative renewable energy investments in South Asia in recent years.
About IFC:
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
.
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