Chief Executive Officer & Executive Director - Alhassan Andani
In a monumental victory for India’s renewable energy sector, Adani Green Energy, has won the world’s largest manufacturing-linked solar power agreement awarded to date by the Solar Energy Corporation of India (SECI). The project includes a plan to setup an 8-Gigawatt (GW) photovoltaic power plant and a 2- GW solar cell and module manufacturing capacity in five years, and will bring in an investment of Rs 45000 Crore (or $6 Billion).
Apart from placing Adani Green as the largest renewable power generator in the country, it has also taken the company closer to its target of achieving 25 GW of renewable power by 2025. With this contract, it will have 15 GW capacity under various stages of development. Currently, Adani Green has 2.5 Gw of operational and 3.5 GW of under-construction solar and wind power capacity in the country, along with 1.3 Gw of solar cells and modules manufacturing capacity.
As a part of the agreement, AGEL (Adani Green Energy) will build 8 GW of solar projects over the next five years. The first 2 GW of Generation Capacity will come online by 2022 and the subsequent 6 GW Capacity shall be added in annual increments of 2 GW through 2025. “The projects will include a variety of locations, including a 2 GW single-site generation project that is tied to the rank of the largest single-site project announced globally,” said Adani Green.
The project is also estimated to create 400,000 direct and indirect jobs and also displace 900 million tonnes of carbon dioxide over its lifetime.
Likening Adani Green’s initiatives to that of Maruti Suzuki, Billionaire Gautam Adani said in a conference call with reporters “Basically, we are as competitive as China. We’ll be able to develop ecosystems. In the manufacturing of small cars, one Maruti Suzuki had come and an entire ancillary ecosystem came along with it.”
Shares of Adani Green closed 5 % Higher at a record 312.60 Rupees ($4.14) on June 9, 2020. Since the start of the year, the shares have nearly doubled in value.
Highlighting bright prospects of India’s self-sufficiency goals, Gautam Adani said “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 programme). It is another step towards fulfilling our group’s nation-building vision.”
Adani also said that foreign investors were interested in tying up with local partners to invest in India’s renewable energy space. He further added that there was room for an additional 10-15% stake dilution in Adani Green.