Adani wins world’s largest solar project; to invest Rs 45,000 cr

With this contract, Adani Green now has a portfolio of 15 GW of renewable power generating assets.

Billionaire Gautam Adani’s renewable energy firm Adani Green Energy on Tuesday said it has won the world’s largest solar order to build 8 gigawatts of photovoltaic (PV) power plant along with a domestic solar panel manufacturing unit at an investment of Rs 45,000 crore.

Under the offering of domestic manufacturing-lined solar projects from state-owned renewable energy agency SECI (formerly Solar Energy Corp of India), Adani Energy will set up a domestic solar panel manufacturing capacity of 2 GW (2,000 megawatts) as well as built 8 gigawatts (GW) of generation projects.

 

The firm will get a fixed tariff of Rs 2.92 per kilowatt-hour (per unit) from the power plant over a contract period of 25 years.

“This is the world’s largest tender of such large capacity being bid out,” Adani said on a call.

“This will help take Adani Green closer to its target of becoming the world’s largest renewable power company by 2025.”

With this contract, Adani Green now has a portfolio of 15 GW of renewable power generating assets.

It hopes to win tenders for another 10 GW of capacity this year to help it achieve the 25 GW target, said Adani, who heads the $15-billion Adani Group — a sprawling conglomerate with interests in energy, agri-business, real estate and defence, among others.

The first 2 GW of generation capacity will start by 2022, with the rest installed in 2-GW annual increments through 2025, Adani said.

While the company will build the projects at various locations, the solar manufacturing facility will be ready by 2022.

Asked about the viability of Rs 2.92 per unit fixed tariff for 25 years, Adani said, “There is enough margin available.

“Plus we also have 3-5 years to implement the project. We are quite comfortable with the tariff as enough margin is available.”

Also, safeguard duty against cheap imports of solar modules, largely made in or Chinese companies in South East Asia that are hugely subsidised by Beijing, is also a comforting factor.

“Adani Green Energy Ltd (AGEL) has won the first-of-its-kind manufacturing linked solar agreement from SECI,” the company said in a statement.

“This award will take the company closer to its target of achieving an installed generation capacity of 25 GW of renewable power by 2025 which in turn will see it committing an investment of Rs 1,12,000 crore ($15 billion) in the renewable energy space over the next 5…

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