Adani Green Energy Ltd. has achieved a significant milestone in its ambitious plan to expand generation capacity, securing buyers for the complete 8 gigawatts of green power projects it secured in a tender over three years ago.
The green energy arm of Gautam Adani’s diversified conglomerate inked a 25-year contract with Solar Energy Corp. of India (Seci) for the remaining 1.8 gigawatts, as revealed in a statement on Monday. Seci, a state-run entity, served as the intermediary in the auction process, connecting project developers with electricity buyers.
This development reflects a notable shift among state power retailers toward signing long-term offtake contracts, a trend emerging amid the post-pandemic economic recovery and increased electricity demand due to extreme weather conditions in the country. State utilities, which had previously steered clear of long-term agreements in anticipation of lower prices in project auctions, are now displaying a renewed interest in such contracts.
Seci had awarded the project to Adani in June 2020 through an auction that encompassed both solar power generation and equipment manufacturing. Rival firm Azure Power Global had secured bids for constructing 4 gigawatts of solar power plants.
Adani Green, with its existing portfolio of 8.4 gigawatts in operating renewables, aims to invest $22 billion to expand its capacity to an ambitious 45 gigawatts by 2030. With this latest contract, the company has now secured offtake agreements for a total of 19.8 gigawatts of projects, according to Monday’s announcement.
