Adani Green Energy has signed a power purchase agreement (PPA) with state-owned Solar Energy Corporation of India (SECI) to supply 4,667MW of renewable power in what the company has called the “largest ever green PPA”.
The agreement is part of a manufacturing-linked solar tender of 8GW awarded to Adani Green Energy by SECI in June 2020, which set a record as the world’s largest solar development tender.
So far, Adani Green Energy has signed PPAs with SECI for a total generation capacity of close to 6GW of the 8GW awarded in 2020. It said it expects to close the remaining balance of 2GW in the next two to three months.
“We are pleased to have signed the world’s largest PPA with SECI,” said Gautam Adani, chairman of the Adani Group, parent company of Adani Green Energy.
“This is yet another step in our journey to enable India’s dual objective to accelerate India’s renewable energy footprint as well as promote domestic manufacturing under the Atmanirbhar Bharat programme.”
India has set a solar target of 100GW by the end of 2022, but is likely to miss this according to Bridge to India managing director Vinay Rustagi. While solar capacity is currently booming in the country, there are signs of this slowing as higher module and material costs bite.
The country is also aiming to establish a domestic solar manufacturing base to challenge China’s dominance and has implemented incentive schemes and tariffs on imported solar products to support its development. The Adani Group is among 19 firms who have put in bids for setting up solar manufacturing facilities through the incentive scheme.
PV Tech Premium has broken down the key policy mechanisms and support schemes available to solar companies looking to do business in India.
Adani said that his Green Energy company has “committed US$50-$70 billion of investment in the renewables space” and that the latest agreement with SECI “keeps us well on track to our commitment to become the world’s largest renewables player by 2030.”
In January, French energy giant Total agreed to buy a 20% stake in Adani Green Energy.
The Paris-based company had previously purchased a 50% stake in a joint venture with AGEL that recently increased its operating solar portfolio to 2,353MW. That deal, combined with the latest acquisition, has seen Total invest a total of US$2.5 billion in Adani Green Energy and secure a seat on the firm’s board of directors.