Adani to invest Rs 2 lakh crore in renewable energy capacity addition by 2030

New Delhi: The Adani Group plans to invest approximately Rs 2 lakh crore by 2030 to develop 40 gigawatts (GW) of renewable energy generation capacity, targeting net zero emissions across its businesses by 2050, top officials announced on Tuesday.

The conglomerate, which currently has over 10 GW of renewable energy capacity from sources such as solar and wind, aims to add 6-7 GW annually to reach a total of 50 GW by 2030.

"Considering a ballpark figure of Rs 5 crore per megawatt, the investment could amount to Rs 2 lakh crore by 2030," stated Sagar Adani, Executive Director of Adani Green Energy Ltd (AGEL), during a press briefing.

AGEL CEO Amit Singh mentioned that the company would also establish a 5 GW pumped storage capacity to meet peak power demand during nighttime when solar and wind energy generation is low. The carbon credits from renewable capacity, along with other measures, will help the group achieve net zero emissions by 2050.

In the fiscal year 2023-2024, AGEL added 2.8 GW of capacity, accounting for 15 percent of India's total renewable energy capacity addition, Singh said. "This year, our target is 6 GW," he added.

Looking ahead, similar or higher annual capacity additions are expected, Adani noted, specifying that 80 percent of the 50 GW capacity will be solar, with the remaining 20 percent from wind energy.

The conglomerate is also building factories to produce wafers for solar panels and wind turbines. Singh highlighted that the group is now focusing on manufacturing 3 MW wind turbines for areas with lower wind speeds. Currently, it produces 5.2 MW wind turbines suitable for high-potential regions like Khavada in Gujarat.

India, the world's third-largest economy in terms of energy needs, is projected to see a 25-35 percent surge in energy demand by 2030, with peak energy demand estimated to reach 366.4 GW by 2031-32.

AGEL recently completed a greenfield expansion, adding 2,848 MW (2.8 GW) of renewable capacity, including 2,418 MW of solar and 430 MW of wind projects. This expansion included 2,000 MW of solar capacity from the world's largest renewable energy project, a 30,000 MW facility in Khavada, Gujarat, spanning 538 square kilometers.

AGEL aims to add at least 5,000 MW of pumped storage project (PSP) capacity by 2030, starting with a 500 MW PSP in Andhra Pradesh. The company has a robust pipeline of hydro-pumped storage projects across Andhra Pradesh, Maharashtra, Tamil Nadu, and Telangana.

AGEL’s current operational portfolio stands at 10,934 MW, comprising 7,393 MW solar, 1,401 MW wind, and 2,140 MW wind-solar hybrid capacity. It is the first company in India to surpass 10,000 MW in renewable energy capacity. Over the past five years, AGEL's operational capacity has grown at a CAGR of 41 percent, compared to India's 13 percent.

AGEL’s total locked-in portfolio is 21,953 MW, with 10,934 MW operational and 11,019 MW under execution. Approximately 93 percent of AGEL’s portfolio, or 20,368 MW, is backed by 25-year fixed tariff PPAs with sovereign/sovereign equivalent counterparties, providing revenue predictability. The remaining 7 percent is a merchant portfolio, offering higher realizations.