The first 2000 MW capacity will come online by 2022 and the subsequent 6000 MW capacity will be added in annual increments of 2000 MW through 2025, the company said.
Adani Green Energy has won India’s largest manufacturing-linked solar power agreement, awarded to date by SECI, to set up a 8,000 megawatt or 8 gigawatt (GW) solar power generation capacity, and 2,000 megawatt or 2GW solar cell and panel manufacturing capacity in the next five years. The projects will entail an investment of Rs 45,000 crore ($6 billion) and create job opportunities for over 4 lakh people.
The cell manufacturing capacity of 2GW will be over and above the existing 1.3GW that Adani Solar currently manufactures. According to people in the know, French energy major Total SA that invested around Rs 3,707 crore in April to form an equal joint venture for operating solar power assets of Adani Green, is likely to invest in the project.
“Total SA investing in the project may be a logical progression for a company that is looking to become carbon neutral. We are also in talks with other companies, who are willing to invest,” said a senior company official. “The promoters also have the option of diluting the stake in the company, where they hold over 75%, to raise the capital for the project,” the official added.
According to an analyst with a foreign brokerage firm, raising funds will be challenging for Adani Green, which will have to find cheap funds from foreign markets to make a decent return on a risk-free SECI-awarded project. The company will get Rs 2.92/Mwh under the power purchase agreement with SECI.
As on March 31, Adani Green’s gross debt was at Rs 13,943 crore (excluding inter corporate deposits and lease liability) and net debt was Rs 11,470 crore. According to the award agreement, the 8,000 MW of solar development projects will be implemented over the next five years. The first 2000 MW capacity will come online by 2022 and the subsequent 6000 MW capacity will be added in annual increments of 2000 MW through 2025, the company said.
“The projects will include a variety of locations, including a 2000 MW single-site generation project that is tied for the rank of the largest single-site project announced globally,” Adani Green said. The solar cell and module manufacturing capacity of 2,000 MW will be established by 2022 and, along with the existing 1,300 MW of capacity, it will further consolidate the group’s position as India’s largest solar manufacturing facility, the company said.