India’s journey towards green energy took a giant leap forward as Avaada Group, one of the country’s leading power companies involved in the manufacture of solar panels, successfully closed its latest funding round. This financial boost, amounting to US$1.3 billion, will propel the group’s solar and green hydrogen businesses to new heights.
Canadian company Brookfield Renewables and its Brookfield Global Transition Fund provided a significant portion of the funding, committing US$1 billion to Avaada Ventures. Additional support came from Global Power Synergy, which invested a total of US$779 million in two separate tranches.
Vineet Mittal, chair and founder of the Avaada Group, remarked, “This funding round marks a significant milestone in Avaada Group’s journey and India’s energy transition.” The financial influx signifies a vote of confidence not only in Avaada’s abilities but also in India’s potential to transition to renewable energy sources.
The Avaada Group is set to funnel the funds into its green power businesses, which include green hydrogen, methanol, and solar manufacturing. The company, having constructed the 1.25GW Bikaner solar plant in Rajasthan, is a key player in the Indian solar manufacturing scene. Avaada’s commitment to its solar business remains strong, as evidenced by its success in securing “several tenders” for new solar projects with a combined capacity of nearly 1.8 GW.
Avaada’s expansion in the solar sector aligns perfectly with the Indian government’s ambitious renewable power generation targets. Currently, Avaada operates a renewable portfolio of 4GW, but the government plans to install a staggering 500GW of total renewable capacity by 2030, a dramatic increase from the 89.4GW of solar and onshore wind at the end of 2021. Solar power is projected to contribute 280GW of this renewable capacity.
India’s renewable capacity saw an addition of just 10.3 GW in 2021, while oil, gas, and coal remained the primary energy sources, accounting for 90% of the country’s energy consumption. This scenario underscores the importance of successful investment rounds for solar power developers like Avaada for the future of India’s energy landscape.
In conclusion, the recent billion-dollar funding round signifies a momentous leap in India’s energy transition journey. With the support of investors and the government, Avaada Group is well-positioned to spearhead India’s green energy revolution, redefining the country’s energy future.