India-based Avaada Group announced that it has raised $1.07 billion to fund its green hydrogen and green ammonia ventures in India as a part of its ongoing $1.3 billion fundraise plan. Brookfield Renewable, through its Brookfield Global Transition Fund, will be investing up to $1 billion in Avaada Ventures Private Limited.
Global Power Synergy Public Company Limited will further invest $ 68 million in Avaada Energy Private Limited for releasing debt obligations and supporting the growth. The company is also in advanced discussions with potential investors to raise another $200 million.
Avaada has recently won a bid under Production Linked Incentive (PLI) scheme launched by the Government of India for setting up 3 GW ingots, cell, and module manufacturing facility. Also, recently, Avaada Energy won the 560 MW (DC) solar project bid in an e-reverse auction conducted by Maharashtra State Electricity Distribution Company Limited. The project was awarded through competitive bidding, followed by an e-reverse auction in which Avaada emerged as the winner with a quoted tariff of Rs 2.88 per kWh.
REGlobal’s Views: Avaada is on an expansion spree with large renewable energy development projects that the company has won in recent bids under implementation. Further, the company is also diversifying in the solar module manufacturing space to secure its supply chains and in the green ammonia and green hydrogen space. Thus, this large funding from Brookfield is essential for Avaada to expand its portfolio.