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Adani Green Energy Ltd (AGEL), a renewable energy player, has finalised a power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI) for the supply of 1,799 MW of solar power. This agreement for solar power has been inked for a 25-year period.
The PPA marks the completion of AGEL's power offtake arrangements for the entire 8,000 MW manufacturing-linked solar tender awarded by SECI in June 2020, setting a world record for the largest solar tender.
AGEL has established 2 GW of photovoltaic (PV) cell and module manufacturing facilities, with a commissioned plant at Mundra, Gujarat. AGEL's associate company, Mundra Solar Energy Ltd (MSEL), operates the manufacturing plant and holds a 2 GW annual capacity. AGEL owns a 26 per cent stake in MSEL through its wholly-owned subsidiary, Adani Renewable Energy Holding Four Ltd.
With this, AGEL has secured PPAs for a total of 19.8 GW, leaving a balance of merchant capacity in its 20.6 GW locked-in portfolio.
The company has also secured over 200,000 acres of land in India, fully de-risking the portfolio for the execution of 45 GW capacity by 2030.
Amit Singh, the CEO of AGEL, shared the company's aim to deliver over 45 GW of renewable energy. This would be a five-fold increase from its current operating portfolio and better align with India's target of achieving 500 GW non-fossil fuel capacity by 2030.
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He said, "Adani Green is committed to not only enabling India's decarbonisation goals but also contributing towards the Atmanirbhar Bharat vision. We are glad to conclude the largest green PPA and enable a sustainable energy landscape. This reaffirms our resolve to provide affordable and accessible clean energy."
This news comes days at a time when Gautam Adani, capitalising on renewed creditor confidence in AGEL, plans to raise $2 billion in primarily new debt next year. Adani Green is exploring various investments, including private placement of debt, offshore bank loans, as well as dollar and rupee bonds. Adani is also reportedly in talks with global financial institutions for fundraising. Adani founders also plan to inject $1 billion equity into the firm. This would allow the company to raise debt without harming its credit metrics.
