A huge investment of Rs 1.5 lakh crore has been announced by Adani Green Energy Ltd. in a bold attempt to support India’s renewable energy infrastructure. With this investment, the Khavda renewable energy project site in Kutch, Gujarat, is expected to increase its capacity to an astounding 30 gigawatts (GW) in the next five years. Managing Director Vneet Jaain recently visited the site and disclosed this ambitious project, which represents a critical turning point in India’s renewable energy landscape.
This ambitious project, an idea of billionaire Gautam Adani, aims to become the largest renewable energy undertaking in the world. This project is almost the size of Mumbai, taking up 538 square kilometers of mostly undeveloped land in Khavda, Gujarat. Adani Green Energy started operations within a year of the project’s inception, and its Khavda site has already seen 2GW of its 30GW planned capacity put into operation.
Adani Green Energy plans to invest an additional Rs 50,000 crore towards renewable energy ventures, totaling 6-7 GW across various locations by 2030, in addition to the massive investment designated for the Khavda project expansion. Adani New Industries, the group’s equipment manufacturing division, is also prepared to contribute an additional Rs 30,000 crore, raising the Adani Group’s total investment to an incredible Rs 2.3 lakh crore.
“In the current financial year, we are targeting an addition of around 4 GW, which will escalate to 6 GW by March 2025,” Jaain said in further detail regarding the timeline. Our goal is to increase capacity by 5GW per year after that, and we also intend to expand into other parts of the nation.”
The 2 GW capacity that Khavda recently put into service is mostly powered by solar energy, but the project is also experimenting with wind energy. Installations of windmills are already underway, with plans to start producing electricity later this year. Adani Green Energy’s dedication to utilizing a variety of renewable energy sources for the production of sustainable power is further demonstrated by this range of sources.
Since Khavda operations began, Adani Green Energy gained an impressive 10.9 GW of operational portfolio. The company’s long-term goals include producing an astounding 45 GW of renewable energy by 2030, and Khavda is anticipated to play a major role in helping them reach this enormous goal.
“We have a comprehensive financial management plan in place, covering the next 7-8 years until we reach our 2030 target of 45 GW,” Jaain said in response to questions about how to finance such an ambitious project. In order to meet the annual financing requirements, this plan includes a strategic mix of external commercial borrowings, domestic loans, equity, and internal accruals.
Adani Green Energy’s parent company, Adani New Industries, is pursuing renewable energy activities in addition to green hydrogen projects, wind turbine manufacturing, solar module production, and battery technologies. The company’s objectives were stated by Jaain, who said, “Our goal is to establish a robust solar manufacturing ecosystem of 10 GW and scale up wind capacity to at least 5 GW.”
With an integrated ecosystem at its Mundra, Gujarat location that can produce 1.5 GW of wind turbine generators and 4 GW of solar equipment, the company’s manufacturing prowess is evident. Though it exports most of its solar manufacturing capacity, the Khavda unit imports most of its equipment from China.
Jaain highlighted operational autonomy in response to a question concerning internal sourcing of equipment from Adani New Industries, saying, “Both companies operate independently, and sourcing decisions are based on what provides the best value.” The emphasis always stays on cost-effectiveness and efficiency when purchasing, whether from internal subsidiaries or external vendors.”
Adani New Industries, an Adani Enterprises Ltd. subsidiary, is still looking into manufacturing expansion opportunities; however, listing plans are still being considered separately. “Expansion in manufacturing is a priority, and while listing is a possibility, our primary focus is on driving innovation and meeting the growing demand for renewable energy solutions,” Jaain concluded, reiterating the company’s trajectory of growth.
Adani Green Energy’s ambitious expansion and investment plans show India’s dedication to sustainable energy development. The company is positioned to have a significant impact on how renewable energy is developed in India and around the world, thanks to its ambitious goals and well-considered investments.
