Adani Green Energy Ltd Inks 1,799 MW Solar Deal with SECI
Adani Green Energy Ltd (AGEL) witnessed a 3% surge in its shares, reaching Rs 1,563.70 on the BSE, following the company's signing of a power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI) for the supply of 1,799 MW of solar power. Over the last week, the stock has experienced a 2.69% increase, and in the past month, it has gained 48.56%. Looking at the broader timeframe, the stock has shown a significant rise of 61.50% in the past 6 months. However, it recorded a dip of 17.19% in the year-to-date (YTD) period and a 16.67% decrease over the past year.
AGEL has said in an exchange filing that it has finalized a PPA with SECI to supply 1,799 MW of solar power over a 25-year duration. This agreement signifies the completion of AGEL's power procurement arrangements for the entire 8,000 MW manufacturing-linked solar tender awarded by SECI in June 2020, establishing a world record for the largest solar tender, the release notes.
AGEL has set up facilities for the manufacturing of photovoltaic (PV) cells and modules, boasting a combined capacity of 2 GW. This includes a fully operational plant located in Mundra, Gujarat. The management of this manufacturing facility falls under the purview of AGEL's affiliate company, Mundra Solar Energy Ltd (MSEL), which has an annual capacity matching that of 2 GW. AGEL, in turn, owns a 26 percent stake in MSEL through its wholly-owned subsidiary, Adani Renewable Energy Holding Four Ltd.
Following the latest Power Purchase Agreement (PPA), AGEL has solidified contracts for a total of 19.8 GW, with the remaining capacity of 20.6 GW in its secured portfolio designated for merchant activities. Additionally, AGEL has effectively procured more than 200,000 acres of land in India, completely eliminating potential risks in the implementation of its ambitious plan to achieve a 45 GW capacity by the year 2030.
CEO Amit Singh said that the company aims to deliver over 45 GW of renewable energy, representing a significant five-fold increase from its existing operational portfolio. This aligns with India's broader target of achieving 500 GW of non-fossil fuel capacity by 2030. “Aligned to India's target of 500 GW non-fossil fuel capacity by 2030, Adani Green is determined to deliver in excess of 45 GW renewable energy, a five-fold increase from our current operating portfolio. This reaffirms our resolve to provide affordable and accessible clean energy", Singh adds.
The announcement coincides with Gautam Adani's plans to raise $2 billion in new debt next year, leveraging renewed creditor confidence in AGEL. In the first week of December, a group of lenders, comprising BNP Paribas, Coöperatieve Rabobank U.A., DBS Bank, Intesa Sanpaolo S.p.A., MUFG Bank, Societe Generale, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation, have extended the green loan facility. This financing arrangement is anticipated to play a crucial role in facilitating the growth of a prominent green energy producer towards its next significant milestone the creation of the world's largest renewable energy park in Khavda, Gujarat.
The funding marks a significant achievement, providing crucial support for the initial development phase of 2,167 MW at Khavda. This serves as a cornerstone for the future expansion of the Khavda renewable site, according to statements from the company led by Gautam Adani.
