Avaada Group, an Indian renewable energy developer, has inked a memorandum of understanding (MoU) with the government of the state of Gujarat to embark on the development of a substantial 6GW hybrid solar-wind capacity.
The envisioned investment for this ambitious project stands at approximately INR 400 billion (US$4.8 billion). The development is slated to span various districts of Gujarat, with a particular focus on the Kutch region.
The generated power from these projects is intended for supply to several Indian utilities, including Gujarat Urja Vikas Nigam (GUVNL), as well as for Avaada's green hydrogen and ammonia initiatives. The company had previously secured funding for its green hydrogen and solar ventures, amassing over US$1.3 billion in investments, with a significant portion—US$1 billion—coming from asset owner Brookfield Renewables.
Vineet Mittal, the chairperson at Avaada Group, revealed that beyond the MoU with the Gujarat government, the company already has 2GW of capacity either operational or in various stages of development within the state.
Gujarat, positioned as one of India's major solar hubs, is second only to Rajasthan in terms of installed solar capacity. In 2023, Gujarat added 1.3GW of photovoltaic capacity, contributing to the nation's solar landscape. However, the overall solar additions in the country experienced a 28% decline in 2023, primarily attributed to a substantial 42.5% drop in the commissioning of new utility-scale projects.
The interest in hybrid solar-wind projects has been on the rise in India, often driven by the pursuit of round-the-clock power generation. Serentica Renewables, a commercial and industrial renewables developer, recently secured financing for a notable 530MW hybrid project in the states of Rajasthan and Maharashtra. These projects are anticipated to play a crucial role in transitioning away from coal-based power supply.
Hybrid solar-wind initiatives emerged as key investment opportunities in India in the past year, aligning with the growing trend of corporate power purchase agreements. The Avaada Group's latest collaboration marks another significant step in India's renewable energy landscape, contributing to the nation's efforts in sustainable power generation.