Adani Green Optimistic To Add 6 GW RE Capacities In FY25

Adani Green Optimistic To Add 6 GW RE Capacities In FY25

Notwithstanding the interruptions in pace of renewable project installations, triggered by delayed monsoons, Adani Green is optimistic about its target of adding 6 GW of operational capacity in FY25. In its latest investors call, the top management of the firm expressed optimism on its growth trajectory for the current fiscal.

The company said that it is likely to complete 33 percent of its projects in the current quarter. “Because of the monsoon season, there has been a bit of a pressure on meeting the targets. But these are within the limits of plus/minus 10% which we have in a construction cycle typically. So, we are restating that we are going after the aspirational numbers of 6 gigawatts which we talked about earlier in the year,” Amit Singh, CEO of Adani Green said.

He also added, “We are in very advanced stages of completing one-third of that capacity within this quarter. And the remaining will be delivered in a rolling fashion towards end of FY25. Keeping in mind that there are sometimes construction-related issues that could arise, but we are very confident that we will be in that neighborhood.”

Highlighting the initial results from Khavda where it has installed its 5.2 MW turbines for close to 250 MW capacity, the company claimed a CUF of 45% in initial months, and expects it to settle around 35% annually. For solar as well, it is expecting a much higher CUF of 32%, all of which will combine to lift overall portfolio CUF considerably in the coming years.

The CEO of Adani Green also said that with the supply and price of solar modules likely to get more complex, the firm has planned to go look for alternatives. “I think the solar module prices continue to fall down, and we are in a very unique position where we have some of the PPAs where we can import solar models from China, which gives us, again, accretive returns. We are taking advantage of that, and our suppliers are very happy to pass on that reduction in cost to us, and that will be reflected in our capex position and improved returns position.”

He also added, “So, no, this is a good thing. I think in the long term that may not continue to fall, so I think there is an end game to this. So, we are making sure that we have an alternative supply chain ready as well. And we are working with different companies, including ANIL, which is our sister firm, to make sure that we have a captive position where we can use that for our future projects as well, and along with other companies we are working with for our development needs.”

The company expressed satisfaction with its share of profits as a 26% owner in Mundra Solar Energy Limited, as part of SECI’s manufacturing linked tender it had won. With MSEL exporting most of its 2 GW TOPcon line, realisations have been very healthy for all stakeholders.
An area where the firm looks set to make a splash is the C&I market, where it signed its first deal with Google for powering data centres. Stressing that the firm is not going to go into final last-mile distribution, the management said they are going to look for partnerships for that, including from group firm Adani Energy Solutions.  With energy storage costs for batteries dropping over 66%, the firm is hopeful of leveraging the lower costs to become a preferred supplier for more customers on an RTC basis, besides leveraging the difference between peak and off-peak hours.