The Private Infrastructure Development Group (PIDG) has made its first investment in Sri Lanka, backing renewable energy developer Greenpower SL, to more than double its public rooftop solar capacity.
The $12 million project development funding is coupled with an $80,000 technical assistance grant for feasibility studies on nature-based solutions that will enhance the solar installations. The investment will also support the exploration of new technologies such as energy storage, PIDG said in a statement.
PIDG joins Norwegian development fund Norfund– and Eiffel Investment Group-backed independent power producer Volta Groupe as shareholders in Greenpower SL. Greenpower SL was also Norfund’s first investment in Sri Lanka’s renewable energy sector, as part of a $4 million capital raise in 2023.
Headquartered in France, Greenpower SL develops, finances, constructs, owns and operates renewable energy facilities in Sri Lanka. Working with local partner Gaia Greenenergy Group, it has installed solar panels on the roofs of more than 1,300 public buildings such as schools and hospitals across Sri Lanka since 2021.
The latest investment will help scale up the operations to 190 MWp of rooftop solar capacity, from the current 80 MWp in operation. The combined equity investments from PIDG, Norfund and Volta Groupe is expected to drive as much as $57 million more in private sector financing for energy infrastructure in Sri Lanka.
PIDG is funded by the governments of the UK, the Netherlands, Switzerland, Sweden, Australia, Canada and Germany. It offers equity and debt financing, as well as technical assistance for upstream and early-stage infrastructure in sub-Saharan Africa and South and Southeast Asia.
Its earlier transactions include a $4 million convertible loan to Vietnamese electric two-wheeler manufacturer Dat Bike; and $30 million in debt financing for India’s Arya.ag, a grain commerce platform that connects producers to buyers.
