Synopsis: Adani Energy Solutions has secured an ₹8,500 crore transmission project in Andhra Pradesh to build the electricity infrastructure required for upcoming green hydrogen and green ammonia projects in Vizag while strengthening the region’s electricity infrastructure.
Adani Energy Solutions Ltd (AESL) has secured a project related to inter-state transmission worth approximately ₹8,500 crore in the state of Andhra Pradesh. This project will provide electricity to proposed green hydrogen and green ammonia plants in Vizag and simultaneously boost the electricity infrastructure to meet the demands of data centers in Vizag.
Adani Energy Solutions Wins ₹8,500 Crore Transmission Project
Adani Energy Solutions has bagged the “Transmission System for Proposed Green Hydrogen/Green Ammonia Projects in Vizag Area, Andhra Pradesh (Phase-I)” through the Tariff Based Competitive Bidding (TBCB) scheme implemented by the Government of India. This project would establish the power transmission network which is needed for providing electricity to future projects related to green hydrogen, green ammonia, and industrial projects in the Vizag region. The project includes:
- Establishment of a 4×1,500 MVA, 765/400 kV GIS substation at Pendurthi (Vizag)
- Construction of a 3×1,500 MVA, 765/400 kV substation at Khammam-II
- Development of 1,582 circuit kilometres (ckm) of transmission lines
- Addition of 10,500 MVA of transformation capacity
- Supporting an estimated 4,500 MW of electricity demand from green hydrogen, green ammonia, and digital infrastructure projects
- Completion of the project within 30 months
This project shall be implemented through a Special Purpose Vehicle (SPV) that shall be handed to AESL after the bidding process is complete. AESL shall develop, operate, and maintain the transmission lines from then on.
Project Snapshot
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Why Was Vizag Chosen for This Project?
Visakhapatnam (Vizag) is turning out to be one of the most important places in India for green energy and digital infrastructure development. There are various projects going on in Visakhapatnam for green hydrogen and green ammonia, as well as digital infrastructure such as hyperscale data centers using AI technology, which require power. In order to cater to this increasing demand, AESL plans to build 1,582 circuit kilometers (ckm) of transmission infrastructure, build substations at Pendurthi and Khammam-II, and provide 10,500 MVA of transformation capacity for catering to the anticipated electricity demand of 4,500 MW.
The project is also in line with the creation of the Visakhapatnam-Chennai Industrial Corridor (VCIC) that will enhance infrastructure and logistics for the area, thereby making it more attractive for large investments. Andhra Pradesh is establishing itself as a hub for investments in green hydrogen and renewable energy because of its coastline, industries, and renewable energy sources.
Why Does Green Hydrogen Need Such Large Power Infrastructure?
Green hydrogen production involves the use of electrolysis to break down water into hydrogen and oxygen. Because electrolysers use huge quantities of electricity, efficient high-capacity transmission infrastructure becomes necessary. In the same way, green ammonia facilities need green hydrogen as the main raw material, increasing the need for electricity even more. Apart from such sectors, the AI-enabled data centers being proposed in the Vizag area will also need electricity transmission infrastructure.
Who Will Benefit from the Project?
- Green hydrogen and green ammonia project developers setting up manufacturing plants in Vizag
- AI and hyperscale data center operators needing continuous electricity
- Companies operating in the Visakhapatnam-Chennai Industrial Corridor (VCIC)
- Renewable energy ecosystem of Andhra Pradesh through enhanced grid connectivity
- Adani Energy Solutions from long-term transmission revenue
- Consumers and industries through a stronger and more reliable electricity network
What It Means for Adani Energy Solutions
The latest project further strengthens Adani Energy Solutions’ position as India’s largest private transmission and distribution company. Following the award:
- Transmission order book exceeds ₹80,000 crore
- Network expands to 29,531 ckm
- Transformation capacity rises to 1,33,675 MVA
- Strengthens long-term growth prospects amid rising investments in renewable energy, green hydrogen, digital infrastructure, and power transmission.
This ₹8,500 crore project highlights the increasing significance of transmission infrastructure in India’s renewable energy transition. This project also helps in further green hydrogen, green ammonia, and digital infrastructure projects in Andhra Pradesh by enhancing its industry value chain along with the transmission capabilities of AESL portfolio and long-term growth opportunities.
