Renewable energy projects developer Avaada Energy has entered into power offtake arrangement with multiple entities for its 75 MW open access solar projects.
The 75 MW projects are developed under three separate special purpose vehicles (SPVs) of 25 MW each. The SPVs are Avaada MHVidarbha, Avaada MHYavat, and Avaada Sunlight, and the projects are located at Yavatmal, Maharashtra.
Bharat Forge, an infrastructure company, will be sourcing power from the 25 MW open access project of Avaada MHVidarbha.
Linde India, a supplier of gases and related products and services, will buy power from the 25 MW solar project of Avaada MHYavat.
STT Global Data Centres India will procure solar power from the 25 MW project of Avaada Sunlight.
All the three companies have acquired 26% equity shares in the respective SPVs and would purchase the solar power on a single captive user basis. Bharat Forge has subscribed to Avaada MHVidarbha’s 1.13 billion equity shares of ₹10 ($0.13) each, amounting to ₹113 million ($1.45 million). Linde acquired the equity shares of Avaada MHYavat for ₹114 million ($1.48 million).
The companies have signed power purchase agreements with Avaada Energy with a minimum lock-in period of ten years. The two companies would abide by a minimum offtake obligation of 85% of the project’s capacity and bear the open access charges. Avaada has set a minimum weighted average tariff for the projects at ₹3.40 ($0.04)/ unit, according to CARE Ratings.
Bharat Forge had invested ₹113.75 million (~$1.51 million) in Avaada SataraMH to purchase solar power under the group captive model. The 72.75 MW open access solar project of Avaada SataraMH is spread across 528 acres of land in Varkute Village, located in Maharashtra’s Satara district.
Avaada Energy has an open access portfolio of over 500 MW. The Avaada group has another 2,000 MW of open access solar projects under development in Karnataka, Tamil Nadu, Orissa, Maharashtra, and Haryana.
Last month, Avaada Energy announced that it was raising green bonds worth ₹14.4 billion (~$192 million) at 6.75% in the Indian capital market. The bonds are certified by the Climate Bonds Standards Board of the Climate Bonds Initiative and are also compliant with the Securities and Exchange Board of India (SEBI).