AGEL secures US$1.4B investment for 2.1GW Indian energy park

INDIA – Adani Green Energy Ltd (AGEL) has secured a substantial US$1.36 billion (Rs113.33bn) funding to bolster the development of a 2.16GW renewable energy project in Khavda, Gujarat, India.

This senior debt facility of US$1.36 billion marks an extension of AGEL’s construction financing framework, now totaling US$3 billion since initial project financing commenced in March 2021.

Eight international banks, including BNP Paribas, Coöperatieve Rabobank UA, DBS Bank, Intesa Sanpaolo, MUFG Bank, Société Générale, Standard Chartered Bank, and Sumitomo Mitsui Banking, are providing this substantial loan.

AGEL views this funding as a significant milestone in the Khavda project’s initial phase and a significant stride for future expansion.

Once completed, the Khavda project will stand as the world’s largest renewable energy park, aligned with the company’s objective of achieving 45GW of operational renewable capacity by 2030, aligning with India’s net-zero aspirations.

This financing marks a critical component of the company’s capital management strategy, driving its growth objectives. AGEL’s CEO, Amit Singh, expressed confidence in this framework, emphasizing its crucial role in their sustainability commitment and vision.

Singh stated, “We are dedicated to delivering cost-effective green energy through technological advancements, digital transformation, and unwavering focus on operational excellence.

“Our goal is to expand renewable power capacity to 45GW by 2030, reinforcing our resolve to combat climate change risks.”

Moreover, in September 2023, Bloomberg reported discussions between TotalEnergies and AGEL regarding a potential investment of up to US$700 million (€648.56m) in AGEL projects.

TotalEnergies, a prominent French oil and gas major, currently holds a 19.75% stake, making it AGEL’s second-largest shareholder.

World’s second-largest solar photovoltaic developer

Meanwhile, in Mercom Capital Group’s latest annual global report, AGEL has secured the position of the world’s second-largest solar photovoltaic (PV) developer.

The report recognizes the exceptional performance and significant contributions of the Adani Group company in the realm of renewable energy.

With a comprehensive solar capacity of 18.1 GW, encompassing operational, under-construction, and awarded (PPA-contracted) projects, Adani Green Energy cements its global standing in the solar energy sector. France-based TotalEnergies, with a total capacity of 41.3 GW, secured the top position in the report.

Gautam Adani, Chairman of the Adani Group, emphasized their commitment to large-scale renewables, indigenous fully integrated manufacturing, and green hydrogen solutions.

He mentioned, “At the Adani portfolio level, a total investment of USD 75 billion (by 2030) in our energy transition initiatives will further our vision to reach a 45 GW renewable energy capacity by 2030, reinforcing AGEL’s pivotal role in India’s decarbonization journey.”

The report by Mercom Capital Group, a respected clean energy communications and research firm, highlights the top ten global large-scale solar PV developers based on data gathered from July 2022 to June 2023.

It covers projects exceeding 1 MW, including operational capacity, projects under construction, and those with awarded Power Purchase Agreements (PPA).

During the reporting period, the top 10 developers collectively accounted for 145 GW of operational, under-construction, and awarded (PPA-contracted) solar projects.

Among these, 49.5 GW were operational, 29.1 GW were under construction, and 66.2 GW were in the pipeline (PPA-contracted).

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