India’s Avaada Raises $1 Billion From Brookfield

The Indian renewable energy company Avaada has secured a massive $1.07 billion from multiple investors, including Brookfield. 

According to media reports, Brookfield Renewable, part of Brookfield Global Transition Fund (BGTF), has committed to invest $1 billion in Avaada Group. The investor is believed to have already released the first tranche of $400 million to Avaada. While not confirmed, further disbursements would likely be linked to achievement of milestones agreed upon between the two companies. 

The investment will be used by Avaada to expand into green hydrogen and green ammonia markets. Green hydrogen production in India remains at a very nascent stage, with companies operating only a few pilot projects of kilowatt-scale. 

However, many companies — public and private — have announced ambitions plans to set up infrastructure for producing green hydrogen and green ammonia. The government is expected to announce a capital subsidy program for companies looking to set up electrolyzer manufacturing facilities. It is also expected to introduce obligations for large industries to shift from natural gas-based hydrogen/ammonia to green hydrogen/ammonia. 

Avaada is also looking to expand into solar module manufacturing. It recently secured rights to capital subsidies for producing 3 gigawatts of wafers, solar cells, and modules. This subsidy will be released by the government over the next few years, and Avaada will have an option to set up an even larger production facility. 

Global Power Synergy Public Company Limited (GPSC), part of Thailand state utility PTT, is likely to support Avaada in this endeavor. GPSC, an existing shareholder in the company, has invested another $68 million. The new injection will be used to retire outstanding debt and expand into new areas. 

Avaada has a portfolio of around 4 gigawatts and aims to increase it to 11 gigawatts by 2026. The company is reportedly looking to raise another $200 million from investors in the near future.