World Largest Solar Contract
In June, Adani Green Energy Ltd signed a solar manufacturing contract from the Solar Energy Corporation of India (SECI) for the development of 8 GW of projects. The deal is estimated at 45,000 crore, or $6 billion, when solar energy prices fell to very low levels in Indian tenders, local electricity distribution companies in financial difficulty, known as Discoms, began renegotiating some older and more expensive contracts, this has further undermined investor confidence. And all of this happened before the coronavirus pandemic hit. «We are honored to have been selected by SECI for this groundbreaking solar award,» said Gautam Adani, President of the Adani Group. Bidders in the 8-gigawatt tender had to commit to building local solar generation capacity. It remains to be seen whether Adani`s commitment will give the country a lasting boost. «With this victory, AGEL will now have 15 GW of capacity in operation, under construction or under contract, accelerating the path to become the world`s largest renewable energy company by 2025. This award will bring the company closer to its goal of achieving an installed generation capacity of 25 GW of renewable energy by 2025, enabling it to make an investment of 112,000 crore ($15 billion) in renewable energy over the next 5 years,» the company said in a statement. Adani`s solar power plants will be built in several locations, but one of the developments will be a 2-gigawatt grid on a single site that connects Al Dhafra to Abu Dhabi as the world`s largest announced solar project. The Solar Energy Corporation of India (SECI), a government agency tasked with achieving India`s 100 gigawatt solar target by 2022, has selected Adani Green in a tender designed to give a boost to India`s solar generation sector. Adani Solar, the separate photovoltaic power generation arm of the Adani Group, will build an additional 2 gigawatts of domestic cell and module generation capacity under the agreement, which is expected to be operational by 2022. «The coronavirus is likely to worsen the financial health of discoms, but the impact will be reduced by the government providing liquidity to the electricity sector,» said Rishab Shrestha, solar analyst at Wood Mackenzie Power & Renewables.
«These are big projects with contract revenues, and it`s hard for me to imagine SECI pulling out of contracts. Historically, it was the investors who were pessimistic, not the government. As part of the national solar generation project offering of the state renewable energy agency SECI (formerly Solar Energy Corp of India), Adani Energy will build a national solar module production capacity of 2 GW (2,000 megawatts) and build 8 gigawatts (GW) of generation projects. That. The 8-gigawatt solar energy contract that Adani Green Energy received from the government in June has made it the world`s largest solar developer in terms of capacity. «The 2 GW solar cell and module generation capacity will be in place by 2022 and, together with the existing capacity of 1.3 GW, will further consolidate the Group`s position as India`s largest solar generation facility,» the statement added. «The fact that renewable energy is becoming the cleanest and most economical fuel in the world is a matter of course and the Adani Group intends to play a leading role in this journey. The record solar deal calls for Adani Green Energy to develop 2 GW of solar capacity by 2022, with the remaining 6 GW being commissioned in increments of 2 GW each year by 2025. While Adani hasn`t been too accommodating to the site`s details, it`s known that at least one of the projects will be a 2 GW single-site production project, which will be ranked as one of the largest single-site projects announced in the world. Commenting on the victory, Gautam Adani, Chairman of the Adani Group, said: «We are honoured to have been selected by SECI for this historic solar award. In today`s world, adaptation to climate change cannot be seen as independent of economic development priorities, and job creation and decarbonisation must be goals at the same time. India pledged to lead the climate change revolution at the 2015 UNITED NATIONS Climate Change Conference in Paris and is now a leader among just eight countries on track to meet their COP21 commitments.
The Adani Group operates a variety of business areas, from logistics and ports to aerospace and coal mining. The week`s profit brings Adani Green`s pipeline of solar projects built, under construction or under contract to 15 gigawatts. The developer, which is one of the largest players in India`s renewable energy sector, is targeting an installed solar capacity of 25 gigawatts by 2025. Billionaire Gautam Adani`s renewable energy company, Adani Green Energy, announced on Tuesday that it has won the world`s largest solar contract for the construction of an 8-gigawatt photovoltaic (PV) power plant as well as a national solar module production unit for an investment of Rs 45,000 crore. Topics Adani Solar | Solar energy projects | Adani Green Energy Limited`s business model of focusing on long-term contracts with premium counterparties, rapidly building large projects, and then establishing solar development partnerships with the world`s leading integrated energy players looking to reduce their carbon footprint, has enabled the company to grow rapidly since its IPO less than two years ago. This new treaty will help to further strengthen this model. The new 2 GW generation capacity, which will be established by 2022, will build on the company`s existing 1.3 GW capacity and further consolidate the company`s position as India`s largest solar generation facility. Adani`s victory includes a 2-gigawatt solar power plant that would link to the world`s largest. (Image: Adani Green) «This award is another step in our country`s promise on climate change to the world and enables our nation Atma Nirbhar Bharat Abhiyan (Self-Governing India Program).
This is another step towards realizing our group`s nation-building vision. After the capacity to harness solar energy in the utility sector, the main developer was GCL New Energy with 7.1 GW, followed by Enel Green Power with 4.2 GW. Adani ranks eighth in the world on this list. However, with a 10 GW pipeline, Adani has the most allocated capacity and under construction in the world. India has failed to build a local PHOTOVOLTAIC manufacturing sector capable of competing with China. In developing countries, the country`s complex patchwork of regional and national tenders, different rules on local content and often unreliable buyers have led to instability and drive-up financing costs. Earlier this year, Adani Green split several gigawatts of operational solar assets into a new company, with French energy group Total acquiring a 50 percent stake in the new company for $510 million. The project will also increase Adani`s total solar capacity in operation, under construction or under contract to up to 15 GW, including the Rugby Run solar project in Australia and another in South Australia that has not yet been built. Adani Green Energy could try to repeat its recent solar collaboration with France`s Total after winning 8 gigawatts of projects in India this week. Adani Green Energy has been awarded the contract for the world`s largest solar development tender to date and will develop 8 GW of solar projects for the Solar Energy Corporation of India over the next five years. Adani Green is the only Indian developer among the top 10 in the world.
In addition to 65 megawatts in Rugby Run, Australia, the company also has solar projects in operation in Tamil Nadu, Rajasthan and Karnataka. «The fact that renewable energy is becoming the cleanest and most economical fuel in the world is a matter of course and the Adani Group intends to play a leading role in this journey. This award is another step in our nation`s promise on climate change to the world and enables our nation Atma Nirbhar Bharat Abhiyan (Self-Government India Program). This is another step towards realizing our group`s vision of making nation-building a reality,» added Mr. Adani. Based on the promised contract, the 8 GW solar projects will be implemented over the next five years. .