Adani Green Energy Ltd., led by Indian billionaire Gautam Adani, has successfully found buyers for its entire 8 gigawatts of green power projects, a milestone in its ambitious plan to expand generation capacity more than five-fold by the end of the decade.
The company sealed the deal by finalizing agreements in a 25-year contract with Solar Energy Corp. of India (Seci) for the remaining 1.8 gigawatts, as disclosed in a statement by the company on Monday. Seci, a state-run entity, conducted the auction and serves as the intermediary between the project developer and electricity buyers.
Seci awarded Adani’s green energy arm the project in June 2020 through an auction that combined solar power generation and equipment manufacturing. Notably, rival Azure Power Global had won bids for building 4 gigawatts of solar power plants.
This significant agreement marks a shift among state power retailers towards signing long-term offtake contracts, especially after post-pandemic economic recovery.
In contrast, utilities had previously avoided long-term contracts during sluggish demand, opting to wait for project auction prices to drop.
Adani Green currently operates a renewables portfolio of 8.4 gigawatts and plans to invest $22 billion to expand its capacity to an impressive 45 gigawatts by 2030. With this latest deal, the company now boasts offtake agreements for 19.8 gigawatts across various projects.
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In another development, reports indicate that Gautam Adani and his family are set to invest $1 billion in Adani Green Energy.
This strategic move involves issuing preferential shares to support the company’s expansion and address refinancing needs.
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The board of Adani Green will explore fundraising proposals, including the possibility of selling shares or convertible securities, in a scheduled discussion on Tuesday, December 26(today).
Adani Green Energy’s ambitious goal of achieving a 45-gigawatt green energy capacity by 2030 has generated positive market sentiment.
The company’s shares witnessed a more than 5% increase, contributing to a broader market rally that also benefited other Adani Group companies.
Earlier this month, Adani Green secured a substantial $1.36 billion loan from an international bank consortium to facilitate the expansion of its renewable power capacity.