Adani Green Energy completes power purchase agreement with SECI

Adani Green signed the final PPA with the company to supply 1,799 megawatts of solar power for 25 years.

A power purchase agreement (PPA) between the renewable energy company Adani Green Energy Ltd. (AGEL) and the Solar Energy Corporation of India (SECI) has been concluded for the supply of 1,799 MW of solar electricity. This solar power arrangement was signed 25 years ago. The PPA establishes a global record for the largest solar tender and signifies the fulfilment of AGEL’s power offtake agreements for the 8,000 MW manufacturing-linked solar tender granted by SECI in June 2020.

AGEL has set up 2 GW of photovoltaic (PV) cell and module production facilities, including a factory in Mundra, Gujarat, that has been put into service. The production facility is run by Mundra Solar Energy Ltd. (MSEL), an AGEL affiliate with a 2 GW yearly capacity. Through Adani Renewable Energy Holding Four Ltd., a wholly-owned subsidiary, AGEL holds a 26 percent ownership position in MSEL.

As a result, AGEL has PPAs for 19.8 GW in total, with the remaining merchant capacity locked in its 20.6 GW portfolio. By securing more than 200,000 acres of land in India, the company has completely de-risked its portfolio in preparation for completing 45 GW of capacity by 2030.

AGEL’s CEO, Amit Singh, stated the company’s goal of producing more than 45 GW of renewable energy. This will better match India’s aim of achieving 500 GW of non-fossil fuel capacity by 2030 and represent a five-fold increase over its current operating portfolio.

He says, “Adani Green is committed to enabling India’s decarbonisation goals and 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 revelation was released just days before Gautam Adani intends to raise $2 billion in new debt, mostly in 2019, to take advantage of the growing confidence of creditors in AGEL. Adani Green is investigating several investment options, such as dollar and rupee bonds, offshore bank loans, and private debt placement. Adani is purportedly in discussions for funding with international financial institutions as well. The Adani founders also intend to provide the company with a $1 billion equity investment. As a result, the business might increase debt without negatively affecting its credit indicators. 

For more info visit : https://www.adanigreenenergy.com/