Developer Avaada raises $145m to fund 2.4 GW of Asian and African solar

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From pv magazine India.

Avaada Energy, the clean energy arm of Avaada Group, has raised Rs1,000 crore ($145 million) in investment to fund a 2.4 GW chunk of the 5 GW of solar capacity it aims to develop in the next two years. The equity investment was made by the Asian Development Bank (ADB), German development finance institution DEG and Netherlands development finance company FMO, as well as Avaada’s backers.

Avaada is targeting 5 GW of solar energy projects in Asia and Africa, and will use the cash injection to finance the 2.4 GW of capacity it currently has under development.

Avaada Group chairman Vineet Mittal said: “I am thankful and appreciate the repeat investments by [the] ADB and DEG in our renewable energy ventures. Investments by these global financial stalwarts re-validates our impeccable execution track record [of] high-performing assets generating maximum returns for all our stakeholders.”

Only last month, Avaada Energy secured $50 million from the ADB to scale up operations. At the time, the developer had power purchase agreements for around 1.7 GW of new solar capacity. The ADB’s new equity investment in Avaada will be split between its Ordinary Capital Resources and the Leading Asia’s Private Infrastructure Fund (LEAP) – a financial facility arrangement provided by the Japan International Cooperation Agency that is administered by the ADB.

Operational since 2017, LEAP develops solar projects in India including utility scale, rooftop and off-grid schemes backed by the fund’s engineering, procurement and construction capabilities.