India mobilized approximately USD 1.3 billion to finance a 2.15 GW renewable portfolio, comprised of hybrid solar and wind projects, as well as large-scale photovoltaic plants in Gujarat and Maharashtra.
The financing was approved by State Bank of India, REC Limited, and Canara Bank through four special purpose vehicles. The funds will support 1.35 GW of hybrid capacity and 800 MW of solar power intended to supply the Maharashtra State Electricity Distribution Company Limited and Gujarat Urja Vikas Nigam Limited.
Although the contracted capacity amounts to 2.15 GW, the associated physical development includes more than 3,000 MW of solar and 450 MW of wind power distributed across various sites. This difference is due to the configuration of the hybrid projects and the capacity required to meet the agreed delivery schedules.
The portfolio belongs to Avaada Group and has long-term power purchase agreements with state-owned companies, a backing that provides income predictability and facilitates access to bank financing.
Hybrid projects will combine solar and wind power generation to increase availability and improve supply stability. The complementarity between these two resources will allow for energy delivery over more hours and reduce exposure to the variability of any single technology.
Meanwhile, the 800 MW photovoltaic plants will supply electricity at competitive prices in Gujarat and Maharashtra, two of India's most important electricity markets.
“The closing of the financing for more than USD 1.3 billion represents a significant milestone,” said Vineet Mittal, president of Avaada Group.
The executive highlighted the participation of the country's main financial institutions and considered that the operation reflects confidence in the company's execution capacity, asset quality, and growth strategy.
The 1.35 GW portfolio was designed to supply MSEDCL with more consistent output. The 800 MW solar projects, meanwhile, will deliver electricity to GUVNL and Maharashtra's own distribution company.
Banks back a new scale for hybrid renewables
The financial close confirms that hybrid projects begin to gain bankability in India when they have clear contracts, solvent buyers, and structures capable of mitigating execution risks.
The participation of State Bank of India, REC Limited and Canara Bank also reduces dependence on international capital and strengthens the role of local institutions in the country's energy transition.
For developers, this type of financing allows them to move forward simultaneously with multiple assets and avoid each project depending on a separate bank negotiation.
Once operational, the portfolio will provide large-scale renewable energy, reduce dependence on fossil fuel generation, and contribute to improving system resilience.
It will also allow us to meet the growing demand for electricity in two states that concentrate industrial activity, new consumption and a sustained expansion of renewable generation.
Avaada Group currently has a platform focused on clean energy generation and the energy transition in India. The company is looking to consolidate projects with long-term contractual revenues and financial structures that will allow for rapid expansion.
The challenge will be to meet construction schedules and coordinate a portfolio that includes more than 3000 MW of solar and 450 MW of wind power in different locations.