New Delhi: Vineet Mittal-promoted Avaada Energy Pvt Ltd has raised ₹1,000 crore from investors such as the Asian Development Bank, Germany’s Deutsche Entwicklungs- und Investitionsgesellschaft (DEG), Dutch development bank Netherlands Development Finance Company (FMO), Avaada Group said in a statement on Tuesday.
The equity raised is for financing Avaada Energy’s 2.4 giga watt (GW) renewable energy portfolio. Avaada Power is Mittal’s second innings in India’s clean energy space after Tata Power Co. Ltd bought the entire 1.1 GW renewable energy portfolio of Welspun Energy Ltd for $1.4 billion in 2016.
“The equity infusion was split between Asian Development Bank, DEG the German Development Finance Institution, Netherlands Development Finance Company FMO and promoter’s equity," the statement said.
Avaada Group is targeting a 5 GW capacity and has executed 2 GW of renewable energy project in India. The funding institutions’ move comes in the backdrop of a global pivot towards clean energy sources.
According to International Renewables Energy Agency (IRENA), a third of global power generation capacity or 2,351 GW is now being fuelled by renewable energy sources.
“We are targeting an extensive portfolio of 5 GW solar energy projects across Asia and Africa," said Vineet Mittal, Chairman Avaada Group in the statement.
A 2 April IRENA report said that 171 GW of renewable energy was added in 2018, resulting in 2,351 GW or a third of global power generation capacity being fuelled by green energy. Of this Asia accounted for 61% of new capacity in 2018, with China, India, Japan and South Korea accounting for most of this.
This also comes at a time when the interest in the Indian green energy deal space continues unabated. Mint reported on 4 April about private equity (PE) fund Actis Llp in talks to buy the Indian solar power business of French energy firm Engie SA. Also, Actis acquired Shapoorji Pallonji group’s 194MW solar asset portfolio for $200 million, through its renewable energy platform Sprng Energy on 29 March.
India has been working on the largest clean energy programme and has an installed renewable energy capacity of 74.79GW. Of this solar and wind power accounts for 25.21GW and 35.14GW respectively.