Adani Green To Invest Rs 2 Lakh Crore By 2030 To Reach 50 GW Renewable Energy Capacity
The renewable energy-focused company also plans to set up 5 GW of pumped hydro storage capacity in this decade.
Adani Green Energy Ltd. is in the process of investing Rs 2 lakh crore over the next seven years, to take its renewable energy capacity to 50 GW by 2030.
The renewable power producer has an operational capacity of 10.9 GW at present, while the company has a land bank for 70-80 GW already in its possession.
"The entire capacity is fully funded," said Sagar Adani, director of Adani Green, at a media briefing in Ahmedabad.
The operational projects at 10.9 GW already generate Rs 5,000 crore of free cash flow. By next year, the power capacity will grow to 17,000 MW, which will further aid cash flows. Hence, funding the expansion will never be a challenge for the company, said Phuntsok Wangyal, chief financial officer of Adani Green.
Higher capacity utilisation factor at 33-34% in FY25, as compared to 25% last year, will further aid higher generation and revenue from these projects, Wangyal said.
The renewable energy-focused company also plans to set up 5 GW of pumped hydro storage capacity in this decade. And, it is planning to lock locations across the country, said Amit Singh, chief executive officer of Adani Green.
The power cost at Rs 4 per unit will be the cheapest that can come from the pumped storage, Singh said. "Although, we will be looking at battery storage as well, at present the entire focus is on locking locations for pumped storage across India," Singh said.
India's power demand is growing faster at 6.5%, as compared with the historical average of 4.5%. This would create strong opportunity across the value chain for the company, Singh said.
The government is pushing at a run rate of 45 GW renewable tenders every year. Although installations have failed to catch up, as per tender rollout, the company expects to contribute positively to the 2030 target of 500 GW renewable capacity, said Singh.
In FY25, the power producer will add 6-7 GW at the cost of Rs 5 crore per mega watt.
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