Adani Green Energy Aims for 45 Gigawatts of Renewable Energy by 2030
Adani Green Energy, the renewable energy firm owned by billionaire Gautam Adani, has set a target of establishing 45 gigawatts (GW) of renewable energy capacity by 2030. This move is aimed at contributing to India’s carbon neutrality goal and reducing emissions. Currently, the company has operational renewable energy capacity of 8.3 GW, with an additional 12.1 GW in various stages of development. The plan is to increase the combined operational and under-construction capacity to 45 GW by 2030, with an annual addition of around 3 GW through solar and wind energy projects.
French energy company TotalEnergies holds a 19.7% stake in Adani Green Energy, while US investment firm GQG Partners and Qatar Investment Authority (QIA) also have stakes in the company. Adani Green Energy is efficiently funding its capacity expansion, though specific details were not disclosed.
The company’s ambitious capacity-building effort represents about 10% of India’s overall renewable energy target for 2030, as the nation strives to achieve net-zero carbon emissions by 2070. Other major players in the industry, such as Tata Power, ReNew Power, Acme Solar, and state-owned NTPC, are also making substantial moves towards green energy transition.
Despite concerns about its valuation being 32 times its book value, analysts anticipate continuous equity recycling by Adani Green Energy. The company’s equity contribution from yearly cash flows is expected to fuel its future projects, leading to expanding returns on equity.
Adani Green Energy is harnessing the abundant green energy sources in states like Rajasthan and Gujarat, where wind and solar energy are prevalent. The company is a significant investor in Rajasthan’s energy sector and is engaged in developing solar parks with a total capacity of 10,000 MW in collaboration with the state government.
To tackle the variability of wind and solar energy supply, Adani Green Energy is focusing on hybrid projects that combine both sources. Hybridization leads to improved capacity utilization and reduced transmission line sharing costs. The company already operates solar-wind hybrid projects with a capacity of 2,140 MW.
The renewable projects undertaken by Adani Green Energy have made a substantial impact, generating 14.8 million MWh in the fiscal year 2023 and reducing carbon dioxide emissions by 13.5 million tonnes, equivalent to the emissions of 8.9 million cars. These efforts have earned the company recognition as the leading renewable energy firm in Asia and among the top 10 globally in ESG (Environmental, Social, and Governance) assessment by ISS-ESG.
With its significant strides in the renewable energy sector, Adani Green Energy is poised to become the largest renewable company in India and a major player on the global renewable energy stage.
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