Gautam Adani’s renewable energy company, Adani Green Energy Ltd, has set an ambitious target of establishing 45 gigawatts (GW) of renewable energy capacity by 2030. This initiative aligns with India’s carbon neutrality goals and aims to significantly reduce emissions.
Currently, Adani Green Energy has 8.3 GW of operational renewable energy capacity, and an additional 12.1 GW is in various stages of construction or execution, as per sources closely associated with the company who shared details with the Press Trust of India.
The company’s vision is to elevate its current total capacity of 20.4 GW (including operational and ongoing projects) to an impressive 45 GW by the end of the next decade. This plan involves an annual expansion of approximately 3 GW through the installation of solar and wind energy facilities.
Key players in this endeavor include French energy giant TotalEnergies, which holds a substantial 19.7% stake in Adani Green Energy. Additionally, recent stakeholders such as US investment firm GQG Partners (6.8%) and Qatar Investment Authority (QIA) (2.8%) have contributed to the company’s growth.
Adani Green Energy has devised a financial strategy for funding these expansions, although specific details have not been disclosed.
The company’s projected capacity constitutes about 10% of India’s renewable energy goals for 2030, which are integral to achieving a net-zero carbon emissions target by 2070. This mirrors India’s broader transition toward sustainable energy, a movement that Tata Power, ReNew Power, Acme Solar, and state-owned NTPC are also actively supporting. Also Read: ‘Bigg Boss OTT 2’ winner Elvish Yadav
Rajiv Jain of GQG Partners commended Adani’s operational efficiency, highlighting the company’s ability to secure payments within 60 days, a significant improvement compared to the industry average of 260 days. This solid financial foundation is reflected in a 25-year fixed-tariff power purchase agreement (PPA) with an average tariff of ₹3.02 per unit, which underpins the company’s revenue outlook.
Despite concerns regarding Adani Green Energy’s valuation—32 times its book value even after adjustments—analysts anticipate a continuous cycle of equity recycling due to annual cash flow generation. This mechanism is poised to drive expanding returns on equity.
Renewable energy derived from sources like wind and sunlight is both abundant and eco-friendly, emitting no greenhouse gases. Adani Green Energy capitalizes on these natural resources in regions like Rajasthan and Gujarat, where solar and wind energy potential is substantial.
Rajasthan is swiftly emerging as a solar energy hub, facilitated by a dedicated transmission corridor and extensive government-owned land for solar installations. Adani Green Energy is a significant investor in Rajasthan’s energy sector, partnering with the state government’s nodal agency RRECL to develop phased solar parks totaling 10,000 MW.
The company strategically assesses wind resource potential across India for its wind projects. Combining wind and solar energy mitigates variability challenges, as their generation profiles complement each other. Operational wind power plants contribute 1,201 MW to Adani Green Energy’s capacity, while solar-wind hybrid projects add 2,140 MW of operational capacity.
Adani Green Energy’s initiatives contribute to India’s efforts to reduce its carbon footprint. In the fiscal year 2023, the company’s renewable projects generated 14.8 million megawatt-hours (MWh), leading to a reduction of 13.5 million tonnes of CO2 emissions, equivalent to the carbon output of 8.9 million cars. The company’s strong ESG performance earned it top recognition in Asia and a position among the “Top 10 RE companies globally,” according to an ISS-ESG assessment.
With these accomplishments, Adani Green Energy solidifies its status as the world’s largest solar developer and is on track to become India’s foremost renewable energy company, exerting significant influence on the global renewable energy landscape.