Adani Group to Invest $20 Billion in Renewable Energy, Foray into Green Hydrogen
The group aims to triple renewable power generation capacity over the next four years
September 23, 2021
The Adani Group will invest $20 billion in renewable energy generation and component manufacturing over the next ten years and produce the world’s cheapest green electron, its Chairman Gautam Adani has said.
Adani Group’s plans include tripling its renewable power generation capacity over the next four years, green hydrogen production, powering all data centers with renewable energy, and turning its ports into net carbon zero by 2025. It plans to spend over 75% of capital expenditure until 2025 on green technologies.
Speaking at the JP Morgan India Investor Summit, the Adani Group said, “Our integrated value chain, our scale, and experience puts us on the path to be the producer of the least expensive green electron anywhere in the world.”
“Our actions clearly indicate that we are putting our money where our mouth is. Over 75% of our planned capex until 2025 will be in green technologies. Today, the green business has 43% of its earnings before interest, tax, depreciation, and amortization (EBITDA) from utilities. We will triple our renewable power generation capacity over the next four years – from 21% now to a high of 63%; no company is building at this scale,” he said.
The Adani Group chief said that over $20 billion would be invested across renewable energy generation, component manufacturing, and transmission and distribution over the next ten years. “We will be the first port business ahead of its target to get to net-zero by 2025. This business has committed to a 1.5-degree pathway through a science-based targets initiative. We will be the first Indian data center company to power all its data centers with renewable energy by 2030.”
Adani’s announcement came weeks after Reliance Industries (RIL) Chairman Mukesh Ambani declared that RIL would invest ₹750 billion (~$10 billion) in the green energy space. RIL proposes to build an integrated solar photovoltaic factory, advanced energy storage battery manufacturing unit, and fuel cell facility in Gujarat.
The Adani group currently has 4,920 MW of operational renewable energy generation capacity and another 5,124 MW under execution. It has a confirmed pipeline of 9,750 MW and another 4,500 MW, likely to win contracts.
According to Mercom Capital Group, Adani Green Energy tops the ten leading global large-scale solar photovoltaic (PV) developers.
Adani Solar led the way in terms of large-scale solar in 2020, with projects commissioned in Gujarat, Rajasthan, and Uttar Pradesh, accounting for 13% of the total installations in 2020, according to Mercom’s recently released report India Solar Market Leaderboard 2021.
Adani was also third among the top module suppliers to the Indian solar market in 2020, with 9% of the market share.
Gautam Adani said, “We are already the world’s largest solar power player when we account for our generating, under construction, and contracted projects. We have done this in just two years. Our renewables portfolio has reached our initial target of 25 GW – a full four years ahead of schedule, putting us well on track to be the world’s largest renewable power generating company by 2030. This also opens up several new pathways for us, including setting us up to be one of the largest green hydrogen producers in the world.”
Rahul is a staff reporter at Mercom India. Before entering the world of renewables, Rahul was head of the Gujarat bureau for The Quint. He has also worked for DNA Ahmedabad and Ahmedabad Mirror. Hailing from a banking and finance background, Rahul has also worked for JP Morgan Chase and State Bank of India. More articles from Rahul Nair.