Adani Green Energy Ltd (AGEL) has signed a power purchase agreement (PPA) with the state-run Solar Energy Corporation of India (SECI) to supply 4.66 gigawatts (GW) of green power.
“The AGEL-SECI agreement to supply 4,667 MW is part of a manufacturing-linked solar tender of 8,000 MW awarded to AGEL by SECI in June 2020, which set a record for being the world’s largest solar development tender ever awarded,” the company said in a statement.
“This is yet another step in our journey to enable India’s dual objective to accelerate India’s renewable energy footprint as well as promote domestic manufacturing under the Aatmanirbhar Bharat programme,” said Gautam Adani, Chairman of the Adani Group.
At the COP-26 summit in Glasgow, India announced its plans to increase non-fossil fuel power generation capacity to 500 GW by 2030. Earlier this year AGEL bought Japan’s SoftBank Group Corp.’s and Bharti Enterprises Ltd owned solar power producer SB Energy India for an enterprise value of $3.5 billion.
Following the proceedings at COP 26, it is increasingly evident that the world has to equitably transition to a low carbon economy faster than previously anticipated, he noted.
“This is why the Adani Group has committed USD 50-USD 70 billion of investment in the renewables space. This agreement keeps us well on track to our commitment to become the world’s largest renewables player by 2030,” Adani added.
According to the government, India has already reached 38.5% of its installed power capacity from non-fossil fuels. India’s non-fossil fuel-based capacity is on track to surpass the earlier 40% target under its nationally determined contribution (NDC) and this is expected to go up to 66% by 2030. Also, India has already reached an emission reduction of 28%.
So far, AGEL has signed PPAs with SECI for a total generation capacity of close to 6000 MW of the 8,000 MW awarded in 2020. AGEL expects to close the balance 2000 MW PPA in the next two to three months.
AGEL has a total portfolio of 20.3 GW, including operational and under-construction projects. France’s Total has invested $2.5 billion for acquiring a 50% stake in 2.35GW operating solar assets of AGEL and a 20% stake in AGEL. The Adani-Total JV plans to commission 25GW by 2025.
Adani Group has lined up ambitious green energy plans and is also among the 20 firms including JSW Group, BlackRock Inc., and Canada’s Brookfield Asset Management Inc. that has signed non-disclosure agreements (NDAs) for the sales process of Actis Llp’ renewable energy platform in India—Sprng Energy—as reported by Mint earlier. Indian firms, including Adani Group, Reliance Industries Ltd, and Acme Solar Holdings Ltd, have also announced their green hydrogen plans.
