Another Indian solar power generation company has landed massive funding from international development banks, signalling a global confidence in India’s renewable energy future.
Avaada Energy announced recently that it secured funding worth Rs 1,000 crore (US$143 million) from various development banks to fuel its expansion in Indian and African solar power markets. The funding shall be used to finance projects currently under various stages of development, and to fund new projects.
The funding has been provided by the Asian Development Bank; DEG, the German Development Finance Institution, and Netherlands Development Finance Company FMO, with the company’s promoter also pitching in.
Avaada Energy plans to have an operational capacity of 5 gigawatts across Asia and Africa. The company currently has a presence in India, Vietnam, and some African countries.
Avaada’s origin story begins from the end of one of the most successful renewable energy companies in India. The company’s CEO, Vineet Mittal, earlier headed Welspun Renewable Energy. The company was among the first movers in India’s renewable energy market and had been delivering projects even before the country had introduced the reverse auction regime. Mittal propelled the company to an installed capacity base of 1.1 gigawatts — including 990 megawatts of solar power capacity, which was the largest in the country at one point.
Welspun Renewable Energy’s stellar growth and large capacity attracted attention of one of the largest private sector power generation companies in India — Tata Power. In 2016 Welspun Renewable Energy was acquired by Tata Power Renewable Energy, a subsidiary of Tata Power, at $1.4 billion in the largest renewable energy deal in India.
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