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Thursday, August 13, 2020

Adani wins world’s ‘largest’ solar project; to invest $6 billion

The development helps AGEL overtake ReNew Power as the largest renewable player.

By: ENS Economic Bureau | Ahmedabad, New Delhi | Updated: June 10, 2020 12:53:47 am
Adani solar plant, Adani solar plants, Adani Green Energy, Total SA, Business news, Indian Express Based on the award agreement, the 8 GW of solar development projects will be implemented over the next five years. (Express Photo by Kamleshwar Singh)

The Solar Energy Corporation of India (SECI) has awarded Adani Group’s renewable energy arm a project to build an 8 gigawatt (GW) solar power plant and 2 GW of additional solar cell and module manufacturing capacity over the next five years, the company announced Tuesday. The project, which Adani Green Energy Ltd (AGEL) claims is the “largest of its type”, will entail a single investment of $6 billion and is expected to create 4,00,000 direct and indirect jobs.

The development also helps AGEL overtake ReNew Power as the largest renewable player, as it will be managing a renewable portfolio with a 15 GW capacity compared with ReNew’s 8.65 GW renewable assets. Azure Power, which has a portfolio of over 7 GW in “various stages”, will become the third largest player.

Azure Power, which had also participated in the bids invited by SECI for this project, has reportedly received approval to build 1 GW solar manufacturing and a 4 GW linked solar power plant after exercising a greenshoe option provided to it in November.

Adani, under its greenshoe option, reportedly offered to build an additional capacity of 1.5 GW in solar manufacturing and 6 GW in power generation. Adani had already won 1 GW in manufacturing and 4 GW as the linked power plant.

Based on the award agreement, the first 2 GW of generation capacity will come online by 2022 and the subsequent 6 GW capacity will be added in 2 GW annual increments through 2025.

The projects will include a variety of locations, including a 2 GW single-site generation project that is tied for the rank of the largest single-site project announced globally. The solar cell and module manufacturing capacity of 2 GW will be established by 2022 and along with the existing 1.3 GW of capacity will further consolidate the Group’s position as India’s largest solar manufacturing facility.

“The fact that renewable power will transition into becoming the world’s cleanest and most economical fuel is a foregone conclusion and the Adani Group intends to play a leading role in this journey. This award is yet another step in our nation’s climate change promise to the world as well as enabling our nation’s Atmanirbhar Bharat Abhiyan (Self Reliant India Program). It is another step towards fulfilling our Group’s Nation Building vision,” said Adani Group chairman Gautam Adani.

The company expects this award to bring it closer to an installed renewable power generation capacity target of 25 GW, which will see it committing an investment of $15 billion in this space over the next 5 years.

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