Synopsis: Over the next ten years, Adani Enterprises to invest $20 billion (Rs 1.48 trillion) in the renewable energy supply chain, which includes electricity generation, manufacturing, transmission, and distribution.
Adani Enterprises to invest $20 billion announcement comes after Reliance Industries Ltd (RIL) announced in June that it will invest Rs 75,000 crores in clean power over the next three years.
Adani Enterprises chairman Gautam Adani announced on Tuesday that the company’s renewable power generation capacity would be tripled in the next four years.
Adani presently has 12.5 GW of installed thermal power capacity and another 7 GW planned. Adani currently has a renewable energy capacity of 15 Gw installed.
Adani claims that by then, renewable energy will account for more than 60% of the company’s installed capacity. Adani further stated that “no other company in the world is building on this scale”.
RIL’s “New Energy and New Materials” branch seeks to invest in solar power generation and manufacturing, hydrogen production, e-fuels, and energy storage. SB Energy’s portfolio of 4.9 Gw was purchased by Adani Green Energy Ltd (AGEL) in May this year for $3.5 billion (Rs 25,574 crore approximately).
With a total of 25 Gw of developed and under construction renewable energy projects, the company has become India’s largest renewable energy company.
“This puts us well on track to be the world’s largest renewable power generating company by 2030. This also opens up several new pathways for us, including setting up of one of the largest green hydrogen projects in the world,” Adani said. “Our actions clearly indicate that we are putting our money where our mouth is,” Adani added while speaking at the JP Morgan Investment Summit.
The port-to-power behemoth is now up against global behemoths. Enel Spa, established in Italy, currently has a renewable electricity generation capacity of 48.6 GW, with a goal of 120 GW by 2030.
China Energy Investment Corp (China Energy), which was founded in 2017, is the next in line. According to the company’s website, it is the largest producer of coal, thermal power, wind power, coal-to-liquids, and coal chemical products in the world.
Back home, Adani faces competition from Tata Group, which has stated that it will exclusively invest in renewable energy. Tata Power wants to reach a capacity of 25 GW by 2030.
Another is the state-owned NTPC, which is vital in combining coal and renewable energy. By 2030, the government-owned corporation wants to triple its current installed renewable capacity of 1 GW to 3 GW.
In 2020, Adani indicated that it would invest more than 70% of its energy vertical’s budgeted CAPEX in clean energy and energy-efficient technology.
He said that by 2030, it would be the first Indian corporation to power all of its data centres with renewable energy.
The green business accounts for 43% of Adani’s current EBITDA (profits before interest, tax, depreciation, and amortisation) from utilities, according to the company.
The group’s enterprises would exceed the country’s carbon intensity reduction objective of 33-35%.
“We are confident our integrated value chain, our scale, and our experience put us on the path to be the producer of the least expensive green electron anywhere in the world,” said Gautam Adani.
Among other fields that will play a role in contributing to green energy, Adani said their port business would be the first one in the group to be net-zero by 2025.
