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IFC confirms $20m India energy fund commitment

  • Alvina Yuen
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International Finance Corporation (IFC), the private investment arm of the World Bank, has confirmed its $20 million investment in Nereus India Alternative Energy Fund, a vehicle focused on renewable power generation and clean technologies.

The cleantech fund launched earlier this year, targeting $250 million to invest $15-25 million in 7-10 projects. At that time, IFC was cited as one of the LPs.

"There is an urgent need for alternative energy infrastructure to meet India's power demand," Thomas Davenport, director for IFC South Asia, said in a statement on Monday. "The fund is targeting renewable energy with significant environmental impact for the first time in the country, helping build support for its widespread adoption."

An estimated 38% of India's population lacks access to electricity. With power demand expected to grow fivefold by 2030, the country has called for more renewable energy development. Jonathan Winer, founder of Nereus, added that IFC's expertise in the renewable energy sector would help the private equity firm increase the impact of its investments.

IFC has been active in supporting funds and companies in the cleantech space. In January, it committed $5 million in debt financing to Mahindra Solar One while last June it injected $4 million in Sapphire Industrial Infrastructures, a tin film solar plant operator.

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