Avaada Energy, the renewable energy division of Avaada Group, has secured green financing of ₹11.9  billion (~$143 million) from the State Bank of India (SBI), a public sector lender.

The 20-year-old financing facility will facilitate the development of a 400 MW utility-scale solar power project located in the Surendra Nagar district of Gujarat.

Gujarat Urja Vikas Nigam (GUVNL), a government of Gujarat agency involved in electricity bulk procurement and distribution, will procure all the electricity generated by the project.

The transaction marks Avaada’s inaugural venture in constructing a greenfield project within an existing special purpose vehicle that already operates a project.

This strategic arrangement is expected to enable the company to streamline its capital structure and simplify the ownership framework of its project subsidiaries.

Vineet Mittal, Chairman of Avaada Group, said, “We are delighted to strengthen our relationship with the State Bank of India through our project financing agreement. This partnership not only reflects our strategic vision to build a diverse and high-quality portfolio of energy transition assets but also highlights the trust and commitment of leading financial institutions to support renewable energy projects with stable, long-term cash flows.”

Avaada Group is engaged in renewable energy generation, solar manufacturing, developing green fuels like green ammonia, green methanol, and sustainable aviation fuel, and providing energy storage solutions.

The company’s renewable power generation division aims to reach a capacity of 11 GW by 2026.

Recently, Avaada Energy closed a ₹44.71 billion (~$535.3 million) refinancing deal with the National Bank for Financing Infrastructure and Development (NaBFID) for four inter-state transmission system-connected solar projects with a combined capacity of 1.7 GW in Rajasthan.

Last April, Avaada Group raised $1.07 billion from Brookfield Renewable to support its green hydrogen and green ammonia projects in India. The funding is part of the company’s ongoing plan to raise $1.3 billion.

Avaada Energy was also among the winners of NTPC’s auction to set up 1,500 MW of ISTS-connected solar power projects (Tranche II) across India. Avaada was awarded 500 MW out of the 750 MW quoted capacity at a tariff of ₹2.6 (~$0.0313)/kWh.

The ccompany was also a winner in the Solar Energy Corporation of India’s auction to set up 1,500 MW ISTS-connected solar power projects in India under Tranche XIV. Avaada quoted the lowest tariff of ₹2.57 (~$0.0310)/kWh to win 300 MW.