Adani Energy Solutions (AESL), formerly Adani Transmission (ATL), has secured $1-billion financing for an under-construction high voltage direct current (HVDC) transmission link in Mumbai.
The construction work for the 80 km project is scheduled to commence in October this year. Following its completion, the grid will supply renewable power to the city and support its rising electricity demand, AESL said in a statement.
Of the total $1 billion, the company would be raising $700 million from the banks as revolving credit, while the remaining $300 million would be equity. The life span of project is 5-7 years.
“This link is the need of the hour for the city and will support its growth aspirations. It showcases our commitment to offering Mumbai a brighter and greener future. The project will help accelerate the city’s decarbonisation and its net zero journey,” MD Anil Sardana said.
The banking consortium for the funding comprised nine international banks, including DBS Bank, Intesa Sanpaolo, Mizuho Bank, MUFG Bank, Siemens Bank, Société Générale, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation and The Hong Kong Mortgage Corporation.
The transmission link connects between Kudus and Aarey Colony in Mumbai.
Mumbai’s electricity demand is expected to touch to 5,000 MW by FY25 from the current peak demand of 4,000 MW. The city has only 1,800 MW of embedded generation capacity and the existing transmission corridors face capacity constraint risks. The link shall inject an additional 1,000 MW of renewable power into the city, thus ensuring uninterrupted power supply in future.
The project is in line with AESL’s commitment to increase the share of renewable power in its overall mix to 60% by 2027, of which it has already achieved 30%.
ATL had changed its name to AESL, effective July 27.
Earlier in October 2020, Mumbai faced a power outage due to grid constraints. The HVDC transmission link announced by the company will improve grid stability by connecting with both the state and national grids, it added.
AESL, Adani Group’s transmission and distribution business arm, has presence across 14 states, with a cumulative transmission network of 19,778 circuit km. Of the total, 15,926 km is operational and remaining 3,852 km is in various stages of construction.