Power purchase agreements for 8GW of solar projects are secured by Adani

27 Dec 2023 , 10:14 AM

Adani Green Energy Ltd. has achieved a significant milestone in its aim to increase generation capacity by more than five times by the end of the decade: it has found buyers for all eight gigawatts of green power projects it won in a tender more than three years ago.

For the final 1.8 gigawatts, Solar Energy Corp. of India, or Seci, has inked a 25-year deal with the green energy division of billionaire Gautam Adani’s coal-to-airports conglomerate, the company announced on Monday. The auction was held by the state-run Seci, which also acts as a middleman between the electricity buyers and the project developer.

The agreement shows that state power retailers are moving towards long-term offtake agreements following the economic recovery from the epidemic, as the nation’s demand for electricity is further increased by harsh weather. Due to weak demand, the utilities have previously avoided long-term contracts in favour of waiting for project auction prices to decline.

In June 2020, Seci held an auction wherein solar power generating and equipment manufacturing were merged, and Adani was awarded the project. Bids for the construction of four gigawatt solar power facilities had been won by rival Azure Power Global.

Adani Green currently operates a portfolio of 8.4 gigawatts of renewable energy, and it intends to invest $22 billion to increase that capacity to 45 gigawatts by 2030. The company announced on Monday that it now has offtake agreements for 19.8 gigawatts of projects with this most recent acquisition.

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