Adani Green Energy Plans To Raise Greenfield Capacity Annually Over 8 Years

Adani Green Energy Ltd., the renewable energy arm of the Adani Group, plans to add around 3.5-4 gigawatts of greenfield renewable capacity annually for the next seven to eight years, according to Vneet Jaain.

“The expansions will be over and above the inorganic, acquisition-related opportunities that may come up,” Jaain, managing director and chief executive officer of Adani Green Energy, told analysts in a post-earnings call.

However, he declined to give details on the acquisition opportunities. “We have a threshold of 16% return on investments. Unless we get that, we are not in a hurry to buy," he said.

According to Jaain, the cost of production for solar projects is estimated at Rs 4-4.5 crore per megawatt, and for wind projects it is around Rs 5-6 crore per MW.

Given the estimates, the projected annual investments are seen in the range of Rs 16,000-20,000 crore.

The company has an operational capacity of 5,800 MW and a total portfolio of renewable projects at 20,400 MW, including projects under construction. The company aims to have 45,000 MW renewable capacity by 2030.

Adani Green's sister concern, Adani Infra (India) Ltd. is also setting up 4 GW of cells and modules manufacturing capacity in the country. It plans to backward-integrate gradually into silicone, ingots and wafers to modules, Jaain said.

In May, Abu Dhabi's International Holding Company PJSC completed a Rs 15,400-crore investment transaction in Adani Green Energy, Adani Transmission Ltd., and Adani Enterprises Ltd. The contribution to Adani Green was Rs 3,850 crore.

In January, French energy major TotalEnergies SE bought 20% stake in Adani Green along with 50% of the 2.35 GW portfolio of operational solar assets for Rs 18,000 crore.

Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.