Avaada Energy raises Rs 315Cr for captive solar project

Avaada Energy, a key player in the renewable energy sector, has raised Rs 315 crore in financing from Aseem Infrastructure Finance Ltd (AIFL) for its captive solar project in Karnataka. 

The project, which is located in the Kalaburagi district, is being developed under a long-term captive Power Purchase Agreement (PPA) with the Karnataka Cooperative Milk Producers' Federation Ltd (KMF).

It aims to enhance energy self-sufficiency for industrial consumers through a captive model, where the generated power is primarily used by the investors themselves.

The 210 MW solar plant is expected to play a significant role in reducing carbon emissions and promoting sustainable energy practices in the region.

Who is financing the project?

The financing provided by Aseem Infrastructure Finance underscores the growing investment in renewable energy within India.

Aseem Infrastructure Finance Ltd (AIFL) is an Infrastructure Finance Company established with the aim of playing a transformative role in the growth of Indian infrastructure debt financing.

This Rs 315 crore financing is structured as a 21-year project loan facility obtained on very competitive terms, demonstrating Avaada's derisked project development strategy and strong project financing capability.

Project details and timeline

The project is scheduled for completion in the third quarter of the fiscal year 2025 (Q3 FY25). This initiative aligns with Avaada Group's broader sustainability strategy and commitment to driving national self-reliance and fostering a greener future.

KMF, the apex body for the dairy cooperative movement in Karnataka, is rated A+ (Stable) by ICRA, emphasizing its financial stability and reliability.

How does this project fit into the broader energy landscape?

This project is part of Avaada's broader strategy to achieve 11 GW of installed renewable energy capacity by 2026, contributing significantly to India's renewable energy targets. Avaada is also involved in solar PV manufacturing and the development of green fuels, including green ammonia and green methanol.

This comprehensive approach positions Avaada as a key player in India's transition towards a sustainable energy future. The financing milestone not only strengthens Avaada's position in the renewable energy market but also demonstrates the increasing investor confidence in sustainable energy projects. 

Notably, The global solar photovoltaic (PV) sector is witnessing rapid growth, with significant increases in installed capacities in countries like the US, China, and the EU.