Adani Green Energy completes 8,000 MW power procurement project for SECI
Renewable energy player Adani Green Energy Ltd (AGEL) has finalized a power purchase agreement (PPA) with Solar Energy Corporation of India (SECI) for supply of 1,799 MW of solar energy. This solar energy agreement has been signed for a period of 25 years.
The PPA marks the completion of AGEL's power purchase arrangements for the entire 8,000 MW production-linked solar tender awarded by SECI in June 2020, setting a world record for the largest solar tender.
AGEL has set up 2 GW of photovoltaic (PV) cell and module manufacturing facilities, with a factory in Mundra, Gujarat. AGEL's associate company, Mundra Solar Energy Ltd (MSEL), operates the plant and has an annual capacity of 2 GW. AGEL owns a 26 percent stake in MSEL through its wholly owned subsidiary, Adani Renewable Energy Holding Four Ltd.
In doing so, AGEL has secured PPAs totaling 19.8 GW, leaving a balance of trading capacity in its locked portfolio of 20.6 GW.
The company has also secured over 200,000 hectares of land in India, completely reducing its portfolio to implement a capacity of 45 GW by 2030.
Amit Singh, CEO of AGEL, shared the company's goal of delivering more than 45 GW of renewable energy. This would represent a five-fold increase over the current operating portfolio and better align with India's target of achieving 500 GW of non-fossil fuel capacity by 2030.
He said, “Adani Green is committed not only to enabling India's decarbonization goals, but also to contributing to the vision of Atmanirbhar Bharat. We are pleased to conclude the largest green PPA and enable a sustainable energy landscape. This confirms our decision to provide affordable and accessible clean energy. energy.”
The news comes at a time when Gautam Adani, riding on creditors' renewed confidence in AGEL, plans to raise $2 billion in mostly new debt next year. Adani Green is exploring various investments including private placement debt, offshore bank loans and dollar and rupee bonds. Adani is also reportedly in talks with global financial institutions for fundraising. Adani's founders also plan to inject $1 billion of equity into the company. This would allow the company to take on debt without hurting its credit ratings.
First print: December 25, 2023 | 2:16 PM IST