ADBs joint venture plans

ADB (Asian Development Bank) has entered a joint venture with India’s NTPC Ltd and Kyushu Electric Power Company of Japan to set up 500 megawatts of renewable energy projects in India in next 3 yrs. The demand for electricity has increased at an average of 8pc per year from 1995. More electricity is produced by the domestic sources of coal or from imported coal.

Michael Barrow, the Director of ADB’s Private Sector Operations Department (PSOD) said this merger will support India to reduce its dependence on fossil fuels and also reduce greenhouse gas emissions and develop energy security and they also think that this merger company will become an example for other investors planning for renewable energy sector in India. The government plan to produce 15% of total power under this National Action Plan from renewable sources by 2020.

At present there is 10% of renewable energy of total power capacity in the country where 65% is from country’s carbon emissions and balance from hydropower and nuclear power. Don Purka, the Senior Investment Specialist with ADB’s PSOD said India can produce over 1,000 megawatts of wind power and it can increase to 48,000 megawatts with proper investment. The small hydropower will produce around 5,000 megawatts of power which is the best way to get support from electricity to low-income households in the remote areas.

NTPC has a 33% market share and it is the largest power producing company in India. Kyushu Electric Power is a private sector generation transmission and distribution company which controls 20,024 megawatts of power generation including hydroelectric, etc. ADB plans to invest 40 million dollars under this merger with 25% stake in the company and NTPC will have a 50% holding and Kyushu Electric Power at 25%. ADB is located in Manila to reduce poverty in Asia and the Pacific by the economic growth, environmentally sustainable growth, etc.