Avaada Energy Receives $10 Mn in Funding From KfW Subsidiary

Avaada Energy, one of the leading green energy companies in India, has received USD 10 million in funding from DEG, a subsidiary of the KfW Group.

Avaada Energy, one of the leading green energy and renewable energy companies in India, has received USD 10 million in funding from development finance institution Deutsche Investitions- und Entwicklungsgesellschaft (DEG), a subsidiary of the KfW Group.

As per the investment announcement made by the German financing institution, Avaada targets to reach 4,300 MW of capacity by 2022 with a geographically and off-taker-wise diversified portfolio of mainly solar projects. The finance sees the firm as a project company, which was established to build, own and operate solar power projects and supply power via long-term power purchase agreements to federal and state power distribution companies and commercial and industrial end-users.

As per the notice, the funding will be applied for the construction, operation and maintenance of the targeted 4,300 MW renewable energy projects.

DEG also provided its reasons for financing in the Indian renewable energy player. It said that the project makes a valuable contribution to improve the electricity supply in India. And that it reduces power deficit that impedes growth and affects the quality of life in India. It diversifies the existing generation mix by harnessing indigenous resources, reducing dependence on imported fuel as well as increasing energy security and balance of payment. The environment will benefit through the reduction of GHG emissions. E&S standards and know-how will be improved and the local income will increase.

In June, the Vineet Mittal-led solar energy developer had secured a Letter of Award (LoA) from Maharashtra State Electricity Distribution (MSEDCL) to develop a 350 MW solar photovoltaic (PV) project in the state. As per the terms of the project tender, the company will supply electricity produced through solar energy to MSEDCL under a long-term Power Purchase Agreement (PPA), which is valid for 25 years from the scheduled commercial operation date (COD).