Adani Attains Financial Closure for $1 Billion HVDC Transmission Link in Mumbai
The link will help inject an additional 1,000 MW of renewable power into Mumbai
Adani Group’s subsidiary Adani Energy Solutions Limited (AESL), a private utility providing end-to-end energy solutions, has obtained financial closure for its $1 billion Green High Voltage Direct Current (HVDC) link project in Mumbai.
The company said the link would help enhance grid stability in Mumbai, where the electricity demand is projected to touch 5,000 MW by 2025, compared to the current peak demand of 4,000 MW.
According to AESL, the city’s embedded generation capacity stands at only 1,800 MW, and the existing transmission corridors are at risk of capacity constraints.
A significant power blackout event in October 2020 highlighted the pressing need for a stable and robust energy supply.
The company said its Green HVDC link, spanning 80 km, addresses these challenges by integrating state and national grids, injecting an additional 1,000 MW of renewable power into Mumbai, and ensuring an uninterrupted power supply in the future.
The endeavor aims to further “green” the Mumbai grid, supplying renewable power to the city and supporting its growing electricity demand.
Adani claimed the HVDC transmission technology chosen for this project stabilizes power distribution networks, mitigating synchronization problems and cascading failures caused by sudden new loads or blackouts.
HVDC is the only viable technology for island cities where submarine cables are used to procure power supply.
Most importantly, HVDC transmits more energy per square meter, resulting in lower energy losses.
The financial closure of the Green HVDC link project was made possible through a $700 million revolving project finance facility, which AESL had secured in October 2021 for its transmission assets portfolio.
Financing for the project was made through a unique platform infrastructure financing framework, which offers a distinctive approach by providing access to funds for future projects based on payments made back by other projects in the portfolio.
A consortium of nine international banks, including DBS Bank, Intesa Sanpaolo, Mizuho Bank, MUFG Bank, Siemens Bank, Société Générale, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, and The Hong Kong Mortgage Corporation, played a crucial role in realizing this financing milestone.
Recently, Adani New Industries, a wholly owned subsidiary of Adani Enterprises, secured a trade finance facility of $394 million from Barclays and Deutsche Bank to fulfill the working capital needs of their integrated solar module manufacturing facility.
Renewable energy company Adani Green Energy generated revenue of ₹20.59 billion (~$250.36 million) from the sale of energy in the first quarter of the financial year 2024, a 55% year-over-year increase from ₹13.28 billion (~$165.11 million).