Avaada Energy, a renewable energy project developer in India, will receive a total investment of $1 billion in multiple tranches from Brookfield, a prominent Canadian investor. The investment will be made through Brookfield’s agreement with Avaada Ventures, the holding company of Avaada Energy. This investment will allow Avaada Ventures to expand its renewable energy portfolio and venture into new areas such as module manufacturing and green ammonia production.
Brookfield has already released the initial tranche of $400 million, and the remaining amount will be dependent on meeting specific milestones. By 2030, the investment will be utilized to establish 5 gigawatts of module manufacturing capacity and double the yearly production to 10 gigawatts. As of April 2022, Avaada Ventures has commissioned approximately 3 gigawatts of renewable energy capacity and is in the process of constructing an additional 1.5 gigawatts of capacity.
In Rajasthan, Avaada Ventures has signed a memorandumof understanding with the Department of Industries and Commerce to invest Rs 400 billion in a facility for renewable energy and green ammonia production. The facility will help to increase the state’s renewable energy capacity and reduce carbon emissions.
The current scenario in India, characterized by a surge in power demand, favorable policies and incentives for renewable energy, ambitious capacity addition goals, and a heightened corporate focus on decarbonization, has resulted in a significant interest among foreign investors in investing in Indian renewable energy companies. This investment by Avaada Ventures aligns with this trend.
The investment by Brookfield and other foreign investors will help Indian renewable energy companies to achieve their ambitious capacity addition targets and reduce their dependence on fossil fuels. The Indian government has set a target of achieving 450 gigawatts of renewable energy capacity by 2030, with 175 gigawatts coming from solar energy. To ahieve this target, the government has introduced several policies and incentives for renewable energy companies.
Avaada Ventures is also focusing on green ammonia production, which is expected to play a key role in the energy transition. Green ammonia is produced by using renewable energy to split water into hydrogen and oxygen, which is then combined with nitrogen to form ammonia. This process does not produce carbon emissions and can be used as a fuel in power plants and transportation.
In addition to Brookfield, Thai utility PTT may also invest $300 million in Avaada Energy, a subsidiary of Avaada Ventures focused on developing solar power projects. PTT invested $454 million in Avaada Energy in 2021 and already holds a 43% stake in the company. The investment by PTT and other foreign investors will help Avaada Energy to achieve its ambitious capacity addition targets and reduce its dependence on fossil fuels.
In conclusion, the investment by Brookfield and other foreign investorsin Avaada Ventures will help Indian renewable energy companies to achieve their ambitious capacity addition targets and reduce their dependence on fossil fuels. The investment will also help to increase the production of green ammonia, which is expected to play a key role in the energy transition. With attractive policies and incentives for renewable energy, India is expected to emerge as a leading destination for foreign investors looking to invest in renewable energy companies.