AGEL Signs 4667 MW PPA, Manufacturing Linked Project Moves Into High Gear

Adani Green Energy Ltd (AGEL), the renewable energy arm of the diversified Adani Group, has signed an agreement with the Solar Energy Corporation of India (SECI) to supply 4,667 MW of green power. The firm claims this is the world’s largest ever green power purchase agreement. It also marks decisive movement on the 8000 MW (8 GW) manufacturing linked solar tender that the firm had won in June 2020. The PPA’s had been delayed due to delays in getting discoms on board, a process where SECI finally achieved a breakthrough this year startubg with GRIDCO, and then added multiple buyers after that, including TANGEDCO and the AP state possibly.

“We are pleased to have signed the world’s largest PPA with SECI,” said Gautam Adani, Chairman of the Adani Group. “This is yet another step in our journey to enable India’s dual objective to accelerate India’s renewable energy footprint as well as promote domestic manufacturing under the Atmanirbhar Bharat programme. Following the proceedings at COP 26, it is increasingly evident that the world has to equitably transition to a low carbon economy faster than previously anticipated. This is why the Adani Group has committed US$50-$70 Bn of investment in the renewables space. This agreement keeps us well on track to our commitment to become the world’s largest renewables player by 2030.”

The 8 GW win for AGEL, when it was announced, was also a record for being the world’s largest solar development tender ever awarded.

So far, AGEL has signed PPAs with SECI for a total generation capacity of close to 6000 MW of the 8,000 MW awarded in 2020. AGEL expects to close the balance 2000 MW PPA in the next two to three months.

Besides AGEL, Azure Power is the other solar developer that is waiting to close its share of 4 GW that it won. Both the firms have had to take tariff markdowns on the original bid price, although both have indicated that material impact will be limited due to the lower financing costs they expect to get now. The last PPA was signed at Rs 2.54/unit under the same project/s, while the Andhra Pradesh agreements are apparently at Rs 2.42/unit.