Adani Signs Solar Supply Pact for Giant India Renewables Project
(Bloomberg) -- Adani Green Energy Ltd. signed a deal to sell power from about 4.7 gigawatts of solar power from India’s largest clean-energy project as the country aims to accelerate the adoption of renewables.
The agreement with state-run Solar Energy Corp. of India means the Adani Group unit has secured takers for almost 6 gigawatts of the 8 gigawatts of capacity it is building. Pacts for the remaining capacity should be reached in the next two to three months, the company said in a filing on Tuesday.
Indian conglomerates, including billionaire Gautam Adani’s group, are committing billions to green energy, pivoting away from their traditional fossil-fuel heavy operations. The country’s pledge to turn carbon neutral by 2070 is fueling a shift into solar, wind and hydrogen, and Adani aims to invest $70 billion by the turn of the decade to benefit from the opportunities.
“This agreement keeps us well on track to our commitment to become the world’s largest renewables player by 2030,” Chairman Adani said. At present, the company ranks 30th, according to a tally by BloombergNEF.
Adani Green won the 8 gigawatt project last year in an auction that combined solar generation and module-manufacturing capacity. In the same sale, rival Azure Power Global won bids to build 4 gigawatts of solar generation capacity.
Adani quoted 2.92 rupees a kilowatt hour for electricity from these projects, higher than rates being set in other solar auctions. That resulted in delays in getting buyers to sign up for the 25-year purchase contracts.
The solar project will be spread across various locations and will be built through 2025, the company said in June last year.
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