The Avaada Group, an Indian power company specializing in solar panel manufacturing, has successfully concluded its latest funding round, securing a substantial investment of $1.3 billion for its solar and green hydrogen businesses.
Earlier this year, the group had announced the funding round, and the achievement of surpassing the billion-dollar mark in investments is undoubtedly a significant accomplishment. Leading the investment charge is Canadian company Brookfield Renewables and its Brookfield Global Transition Fund, which has committed $1 billion to Avaada Ventures.
See also: Avaada secures $1.07bn for Green Hydrogen and Ammonia projects in India
In addition, Global Power Synergy has contributed to the funding, investing $223 million and $68 million in separate tranches this year, resulting in a total investment of around $779 million in Avaada.
Vineet Mittal, the chair and founder of the Avaada Group, expressed the significance of this funding round by stating, “This funding round marks a significant milestone in Avaada Group's journey and India's energy transition. We are grateful for the support from our investors and the Indian government, which is enabling us to contribute to the global energy transition and deliver on our promise of a sustainable future.”
Avaada has announced that the raised funds will be directed towards the expansion of its green power ventures, encompassing hydrogen and methanol production, as well as solar manufacturing. The company holds a prominent position in Indian solar manufacturing, having already developed the impressive 1.25GW Bikaner solar plant in Rajasthan. Additionally, Avaada has secured “several tenders” for new solar projects with a combined capacity of nearly 1.8GW.
The group's ambitious plans for solar expansion align with the Indian government's targets for renewable power generation within the country. Currently boasting a renewables portfolio of 4GW, Avaada aims to contribute to India's vision of achieving 500GW of total renewable capacity by 2030, a significant increase from the 89.4GW of solar and onshore wind installed by the end of 2021. Of this renewable capacity, solar power is expected to contribute 280GW.
Given that India added only 10.3GW of new solar capacity in 2021, with oil, gas, and coal still accounting for 90% of the country's energy consumption that year, successful investment rounds for Indian solar power developers such as Avaada hold immense importance for the nation's long-term energy future.
