India's Adani Group Announces $1 Billion Investment in Renewable Energy

India’s Adani Group announced more development of renewable energy, with the company on Dec. 27 saying its Adani Green Energy arm has received $300 million for the transfer of a 1,050-MW clean energy portfolio as part of a joint venture (JV) with France’s TotalEnergies.

The announcement Wednesday came one day after Adani, led by billionaire Gautum Adani, said shareholders would back a $1.12 billion investment in solar, wind, and other clean energy projects, as part of a continued effort to reduce India’s reliance on fossil fuels. Adani Energy Solutions, an Adani subsidiary, on Wednesday announced plans to spend $360 million to build a transmission line to connect a major wind and solar power installation in western India to the power grid.

Adani also Wednesday announced a deal with a United Arab Emirates (UAE) group, an agreement aimed at growing Adani’s smart meter business both in India and globally.

JV With TotalEnergies

Adani Green Energy, India’s largest renewable energy developer, in a news release Wednesday said TotalEnergies as part of a JV is acquiring a 50% stake in projects developed by Adani Green Energies Limited (AGEL), an Adani subsidiary. The company said the transaction will support its goal of deploying at least 45 GW of renewable energy generation capacity by 2030. Adani Green said it is now “fully equipped” to hit that target; the company at present has about 8.4 GW of operating renewable energy generation capacity.

“The JV houses the 1,050-MW portfolio comprising a mix of already operational [300 MW], under construction [500 MW] and under development assets [250 MW] with a blend of both solar and wind power projects in India,” the statement from Adani Green Energy said. “With this transaction, TotalEnergies has reinforced its strategic alliance with AGEL and support in enabling AGEL’s target of 45 GW capacity by 2030.”

Indian government officials in April of this year said the country’s goal is to have 500 GW of renewable energy generation capacity in service by 2030. India continues to rely on fossil fuels, mostly coal, for much of its electricity output. Government data through May 2023 showed coal-fired units account for about 51% of the country’s power generation. Natural gas accounts for about 6%. India is the world’s No. 3 emitter of greenhouse gases, behind China and the U.S.

Shareholder Investment

The board of Adani Green Energy on Tuesday approved a plan to issue share warrants to key shareholders to raise up to $1.12 billion to grow the company, according to a filing with India’s stock exchange. Indian news reports have said the company has discussed raising as much as $2 billion to support expansion in the next year.

The company on Dec. 25 said it had secured buyers for all 8 GW of renewable energy projects it was awarded in an earlier tender. Adani on Monday said it had signed a 25-year contract with Solar Energy Corp. of India (SECI) for the last 1.8 GW of the tender. SECI, a state-run group, conducted the auction more than three years ago. SECI acts as the intermediary between the project developers and the electricity buyers.

The transmission line announced Wednesday would carry electricity from the Khavda energy park in Gujarat state, a massive solar and wind power installation expected to be completed in 2026. Khavda, planned to have 30 GW of generation capacity, will cover 280 square miles in a salt desert that separates India from Pakistan. Adani in a statement Wednesday said it had acquired the Halvad Transmission project from PFC Consulting. Halvad is expected to carry 7 GW of power from Khavda.

Adani said it plans to commission the 765-kV Halvad line, which will stretch 187 miles, within the next two years.

Smart Meter Deal

Adani Energy Solutions also Wednesday said it had formed a JV with UAE-based Esyasoft Holdings, a company backed by Abu Dhabi’s International Holding Co. (IHC), in support of Adani’s smart meter business. Adani Energy Solutions, which focuses on power transmission and distribution, said it had acquired a 49% stake in Esyasoft, which already invests in Adani companies. Other terms of the deal were not disclosed.

Adani said it has orders to install 20 million smart meters from various utilities and power companies across India, as part of the government’s effort to improve the country’s electricity distribution. Adani in a statement said the deal also will enable the company to use Esyasoft’s network, which works in 10 countries, to support a global expansion.

Adani on Wednesday said India’s government plans to install 250 million meters across the country by 2025.

—Darrell Proctor is a senior associate editor for POWER (@POWERmagazine).