Adani Green Energy Ltd (AGEL) has signed an agreement with Solar Energy Corporation of India (SECI) to supply 4,667 megawatts of green power. The deal, signed on December 14 2021, is the world’s largest-ever green power purchase agreement.
"We are pleased to have signed the world’s largest PPA with SECI," says Adani Group chairman Gautam Adani. "This is yet another step in our journey to enable India's dual objective to accelerate India’s renewable energy footprint as well as promote domestic manufacturing under the Atmanirbhar Bharat programme."
The Adani Group has committed US$50-70 billion of investment in the renewables space, putting the company on track to meet its target of being the world’s largest renewables player by 2030.
The AGEL-SECI agreement is part of a manufacturing-linked solar tender of 8,000MW awarded to AGEL by SECI in June 2020, which set a record for being the world’s largest solar development tender ever awarded.
So far, AGEL has signed PPAs with SECI for a total generation capacity of close to 6,000MW. AGEL expects to close the balance 2,000MW PPA in the next two to three months.
India has committed to increase its installed capacity of renewable energy to 450 gigawatts by 2030.
Adani Transmission Ltd (ATL), India’s largest private sector power transmission and retail distribution company, is on course to increase its share of renewable power procurement from the current 3% to 30% by fiscal year 2023, and to 70% by FY 2030 through its utility subsidiary in Mumbai.
ATL is the transmission and distribution business arm of the Adani Group, one of India's largest business conglomerates. ATL is listed on the National Stock Exchange (NSE).
In late October ATL raised US dollar funding to finance four transmission projects under construction in the western Gujarat and Maharashtra states. The US$700 million project finance revolving facility was the first of its kind for the Indian transmission sector.
Standard Chartered Bank acted as mandated lead bookrunner (MLAB) and documentation and account bank. MUFG Bank acted as MLAB and technical adviser for the facility. DBS Bank, Intesa Sanpaolo, Mizuho Bank, Société Générale, Siemens Bank and Sumitomo Mitsui Banking Corporation acted as MLABs for the facility.
Latham & Watkins and Saraf Partners acted as the borrower’s counsels. Counsels for the lenders were Linklaters and Cyril Amarchand Mangaldas.
Adani says the definitive agreements set out a platform infrastructure financing framework of agreed principles and procedures, under which ATL will engage with the financiers to raise financing quickly and efficiently for future projects. It will help meet the capital recycling needs of the banks involved, and make the same capital available for ongoing and future ATL projects.