Avaada group, a renewable energy company, is looking to incur capex of Rs 15,000 crore every year to add to its renewable energy capacity.
The company plans to take its capacity to 11 gigawatt (GW) by 2026 and 30GW by 2030. Currently, it has an operational portfolio over 4 GWp (gigawatt peak) and an additional ~5 GWp won in various auctions, said Vineet Mittal, chairman of the group.
“The investment will be strategically funded through a balanced mix of debt, internal accruals, and equity raised last year. Our approach ensures a sustainable financial structure while enabling us to aggressively pursue our capacity addition targets of over 3 GWp per year,” Mittal said.
Avaada’s plans come at a time when renewable energy companies such as Tata Power, Adani Green Energy, ReNew and others are putting billions of dollars to add capacities and raising funds from financial institutions.
Last year, Avaada group raised $1.3 billion from Canadian investor Brookfield and GPSC to fund its green hydrogen and green ammonia ventures.
“Our confidence in meeting these targets stems from our strong track record, the growing demand for renewable energy, and our
commitment to sustainable development,” he said.
The country’s plan to install 500 GW of renewable energy capacity by 2030 will involve an investment of at least Rs 2.44 trillion, according to a committee constituted by the Central Electricity Authority (CEA).
Mittal said the investment from Brookfield is particularly noteworthy as it is earmarked for various business verticals within Avaada. These verticals encompass a wide range of activities including renewable energy generation, the production of green fuels such as green ammonia, as well as solar PV manufacturing and electrolyser production, he said.
“We expect the interest rate scenario to start easing from Q1CY24 and would fine tune our borrowing programme accordingly,” he said.
“We are unlocking our potential through energy mix and developing the innovative solutions that would potentially revolutionise the energy landscape and help with the race to net zero. Sustainability initiatives such as emissions footprint assessment, abatement and supply chain sustainability actions align perfectly with our global mission for decarbonisation and environmental stewardship,” he said.