Adani Energy Solutions Limited (AESL) has successfully achieved financial closure for its $1 billion (₹8,300 crore) green high-voltage direct current link project. This initiative aims to supply more renewable power to Mumbai, addressing its growing electricity demand and furthering its green energy goals, the company said in an exchange filing.
What Happened: The credit facility for this project is an extension of the $700 million (₹5,791 crore) revolving project finance facility that AESL secured in October 2021 for its ongoing transmission assets. This innovative Platform Infrastructure Financing Framework, which finances various under-construction assets, ensures consistent capital access for all AESL’s future transmission projects.
The banking consortium backing this framework includes international banks such as DBS Bank, Intesa Sanpaolo, and Mizuho Bank, among others.
Taking The Load Off: Mumbai’s electricity demand is projected to rise to 5,000 megawatts by FY25 from its current peak of 4,000 megawatts. Given the city’s limited embedded generation capacity and existing transmission constraints, there’s a pressing need for solutions like the HVDC transmission link. This link will inject an additional 1,000 megawatts of renewable power into Mumbai, ensuring a stable and uninterrupted power supply. Adani Electricity Mumbai Ltd (AEML), the city’s primary electricity distributor, has pledged to increase its renewable energy share to 60% by 2027.
The HVDC transmission technology, superior to conventional methods, stabilizes power distribution networks, making it especially suitable for areas with submarine cables, like islands. Adani Energy Solutions stands out as the only private entity in India with experience in installing HVDC transmission lines promptly.
Construction for this 80-kilometre project, which promises technological advancement for Mumbai, is set to commence in October 2023. Mr. Anil Sardana, MD, AESL, expressed his enthusiasm for the project, emphasizing its significance for Mumbai’s growth and the city’s journey towards decarbonization.
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Editor’s Note: Artificial intelligence was used as a secondary aid in the writing of this story.
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