New Delhi: Brookfield-backed renewable energy developer Avaada Group is unable to deploy the capital it raised in recent years at a rapid pace as delays in power purchase agreements (PPAs) and grid connectivity have slowed down the execution of some projects, its chairman said.

Avaada Group raised about $1.7-$1.8 billion from private equity investors over five years to expand its generation portfolio and build other verticals such as solar gear manufacturing and the storage business, chairman Vineet Mittal told ET. Avaada has 5 GW of operational and a similar capacity of under-construction generation assets. Its planned 5 GW of solar module and 6 GW of cell manufacturing capacity will be ready this year.

"Our focus is execution. Our focus is to get our manufacturing operationalised quickly," Mittal said, adding that the group has raised enough capital already to fund all its expansion plans until 2027. "But a lot of (the raised capital, we are) not able to deploy because the capex has fallen as the projects are not able to come as fast as we want to," Mittal said, without giving a precise quantum of the funds lying unutilised.

"The only reason projects are currently getting delayed is either for the signing of power purchase agreements (PPAs) or (electric grid) connectivity. There is no third reason," said Mittal.

The connectivity, which was supposed to be delivered by 2027, is getting pushed to 2028 or 2029 in some projects, obviating the need for full capital deployment, Mittal said, adding that some other projects that started earlier are becoming operational and generating cash. "So, you have more cash than you are able to deploy."

Avaada Group is not looking to raise fresh equity capital immediately, Mittal said, adding that interest income from the already raised capital "would be very high".

The group is not planning an IPO for any of its units, Mittal said. "Private equity market gives you a better valuation if you have a good execution track record."

Avaada is neither planning to sell stakes in its projects or manufacturing unit nor buy projects from other developers, Mittal said.

The group has a plan to spend ₹20,000 crore in capex in 2025-26, he said. The capex will have a 75% debt component, most of which is already tied up, and raising debt is pretty easy for the group as multiple foreign and domestic banks intensely compete to offer loans. "If I have a requirement of ₹5,000 crore, I get ₹15,000 crore in bids."