Billionaire Gautam Adani’s renewable energy firm Adani Green Energy on Tuesday said it has won the world’s largest solar project to build 8 gigawatts of photovoltaic (PV) power plant along with a domestic solar panel manufacturing unit at an investment of Rs 450 billion ($6 billion).
Under the offering of domestic manufacturing-lined solar projects from state-owned renewable energy agency SECI (formerly Solar Energy Corp of India), Adani Energy will set up a domestic solar panel manufacturing capacity of 2 GW (2,000 megawatts) as well as building 8 gigawatts (GW) of generation projects.
The firm will get a fixed tariff of Rs 2.92 per kilowatt-hour (per unit) from the power plant over a contract period of 25 years.
“This is the world’s largest tender of such large capacity being bid out,” Adani said on a call. “This will help take Adani Green closer to its target of becoming the world’s largest renewable power company by 2025.”
With this contract, Adani Green now has a portfolio of 15 GW of renewable power generating assets.
It hopes to win tenders for another 10 GW of capacity this year to help it achieve the 25 GW target, said Adani, who heads the conglomerate with interests in energy, agri-business, real estate and defence, among others.
The first 2 GW of generation capacity will start by 2022, with the rest installed in 2-GW annual increments through 2025, Adani said.
While the company will build the projects at various locations, the solar manufacturing facility will be ready by 2022.
Asked about the viability of Rs 2.92 per unit fixed tariff for 25 years, Adani said: “There is enough margin available. Plus we also have 3-5 years to implement the project. We are quite comfortable with the tariff as enough margin is available”.
Also, safeguard duty against cheap imports of solar modules, largely made in China or Chinese companies in South East Asia that are hugely subsidised by Beijing, is also a comforting factor.
“Adani Green Energy Ltd (AGEL) has won the first-of-its-kind manufacturing linked solar agreement from SECI,” the company said in a statement.
“This award will take the company closer to its target of achieving an installed generation capacity of 25 GW of renewable power by 2025 which in turn will see it committing an investment of Rs 1,120 billion ($15 billion) in the renewable energy space over the next 5 years.”
Adani said the project will help India achieve its COP21 target of reducing carbon emission as it will displace 900 million tonnes of carbon dioxide over its lifetime.
“This award is yet another step in our nation’s climate change promise to the world as well as enabling our nation’s AtmaNirbhar Bharat Abhiyan (self-reliant India programme). It is another step towards fulfilling our group’s nation-building vision,” he said.
The projects will include a variety of locations, including a 2 GW single-site generation project that is tied for the rank of the largest single-site project announced globally, it added.
The solar cell and module manufacturing capacity of 2 GW will be established by 2022 and along with the existing 1.3 GW of capacity will further consolidate the group’s position as India’s largest solar manufacturing facility, the statement said.
