Avaada Energy receives INR 315 crore financing for captive solar project in Karnataka

Avaada Energy, a prominent player in the renewable energy sector, has successfully secured INR 315 crore financing from Aseem Infrastructure Finance Ltd (AIFL) for a significant solar project in Karnataka. This move marks a notable advancement in India's infrastructure debt financing and highlights Avaada's commitment to sustainable energy solutions.

Avaada Energy's latest venture is a solar PV power project located in the Kalaburagi district of Karnataka. This project is being developed under a long-term captive Power Purchase Agreement (PPA) with the Karnataka Cooperative Milk Producers' Federation Ltd (KMF). KMF, an apex body for the dairy cooperative movement in Karnataka, holds an A+ (Stable) rating by ICRA, emphasising its financial stability and reliability.

The INR 315 crore financing from AIFL, structured as a 21-year project loan facility, was secured on highly competitive terms. This financial arrangement defines Avaada's derisked project development strategy and robust project financing capabilities.

Vineet Mittal, Chairman of Avaada Group, highlighted the significance of this financial closure, reflecting the strong relationship between Avaada and Aseem Infrastructure Finance.

The funding will drive the development of this marquee captive project for KMF, illustrating the profound impact of the energy transition across the Indian economy. Scheduled for completion in Q3 FY25, this project aligns with Avaada Group's broader sustainability strategy, contributing to national self-reliance and a greener future.

Aluminium, particularly the 6063 alloy, is integral to solar panel manufacturing due to its non-corrosive properties and high recyclability. Its extensive use in industrial applications, including solar panels and motor bodies, promotes its significance in the renewable energy sector.

Globally, the solar photovoltaic (PV) sector is witnessing rapid growth. In the US, cumulative solar generation capacity surged from approximately 48 GW to 104 GW. The Energy Information Administration forecasts a 200 GW increase in renewable energy capacity from 2021 to 2026. As of the end of 2023, the US boasted 179 GW of installed PV and concentrated solar power capacity, trailing only China and the EU.

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