With a ₹22,000 crore combined investment across solar generation, battery storage and pumped hydro projects, Avaada Group is scaling up capacity as India’s renewable penetration deepens and grid-balancing requirements intensify.
The investment comprises ₹7,500 crore earmarked for pumped storage projects, alongside capital deployment in a 2,500 MWh battery energy storage system under development in Rajasthan and nearly 1,000 MW of solar projects slated for commissioning by March, Vineet Mittal, chairman of Avaada Group, told Financial Express.
“We are planning around ₹7,500 crore in pumped storage. As renewable capacity increases, long-duration storage becomes essential to manage peak shifts and maintain grid stability,” Mittal said.
Balancing the Load
The company expects to commission between 800 MW and 1 GW of solar capacity within the current fiscal year. “Most substations are ready. Synchronisation will happen as grid processes are completed. We are targeting close to 1,000 MW by March,” he said.
The 2,500 MWh battery project, expected to be commissioned next year, forms a significant portion of the overall ₹22,000 crore investment plan. Storage tenders are increasingly structured around four to six hours of dispatch, reflecting the extension of India’s peak demand window beyond traditional evening hours.
Mittal said both short-duration battery systems and long-duration pumped hydro are required to support the evolving load curve. “Battery systems address immediate peak requirements, while pumped storage supports longer-duration balancing,” he said.
Renewable consumption enforcement is also tightening, with over 130 notices issued under compliance mechanisms. “As letters of award convert into power purchase agreements, project execution will accelerate,” Mittal said.
On tariffs, Mittal said renewable-plus-storage projects offer long-term pricing visibility compared with thermal generation, where tariffs typically escalate over time. “At comparable utilisation levels, renewables with storage provide stable pricing structures,” he said.
Navigating Global Headwinds
Global supply chain shifts are also influencing strategy. Production adjustments in China have led to module price increases in recent weeks. “This could create opportunities in markets such as Europe and the Middle East, though the US market remains constrained due to tariff conditions,” Mittal said.
On green hydrogen and ammonia, he reiterated that project execution depends on firm offtake agreements. “Without binding long-term contracts, financial closure remains difficult. We will proceed only when firm demand is secured,” Mittal said.