AGEL to Invest INR 2 Lakh Crore, Expand Renewable Capacity to 50 GW by 2030

Adani Green Energy Ltd. (AGEL) is set to make a significant investment of INR 2 lakh crore over the next seven years, aiming to enhance its renewable energy capacity to 50 gigawatts (GW) by 2030. The company currently operates with a capacity of 10.9 GW and has secured a land bank capable of supporting 70-80 GW of renewable energy projects.

'The entire capacity is fully funded,' stated Sagar Adani, director of Adani Green, during a media briefing in Ahmedabad. The existing operational projects, generating 10.9 GW, already produce INR 5,000 crore in free cash flow. This figure is expected to grow as the company plans to increase its power capacity to 17,000 megawatts (MW) by next year, according to Phuntsok Wangyal, Chief Financial Officer of AGEL. This expansion is projected to bolster cash flows significantly, ensuring that funding the growth will not pose a challenge.

The company anticipates a higher capacity utilisation factor of 33-34 percent in FY25, compared to 25 percent in the previous year, which will enhance generation and revenue. In addition to expanding its renewable energy capacity, AGEL plans to develop 5 GW of pumped hydro storage capacity within this decade. Amit Singh, CEO of Adani Green, mentioned that the company is in the process of securing locations across India for these projects.

Singh also highlighted that AGEL added 2.8 GW of capacity, accounting for 15 percent of India's total renewable energy capacity addition in the fiscal year 2023-2024. 

Singh also revealed that the power cost from pumped storage will be as low as INR 4 per unit, making it the cheapest option. While the company is exploring battery storage solutions, the current focus remains on establishing pumped storage locations nationwide.

India's power demand is increasing at a rate of 6.5 percent, surpassing the historical average of 4.5 percent. This surge in demand presents substantial opportunities for AGEL across the value chain. The government is promoting renewable energy with a target of 45 GW in tenders annually. Although installation rates have lagged behind tender rollouts, AGEL expects to play a crucial role in achieving India's 2030 target of 500 GW renewable capacity, Singh said.

To support its expansion plans, AGEL is constructing factories to produce wafers for solar panels and wind turbines. The company is also developing 3 MW wind turbines for areas with lower wind speeds, complementing its existing 5.2 MW turbines designed for high-potential regions like Khavada in Gujarat.

In FY25, AGEL plans to add 6-7 GW of capacity at an estimated cost of INR 5 crore per megawatt. The company recently achieved the largest greenfield expansion in India's renewable energy sector by bringing 2,848 MW (2.8 GW) of renewable capacity online. This included 2,418 MW of solar and 430 MW of wind projects. Notably, 2,000 MW of this capacity came from AGEL's world-renowned renewable energy project in Khavda, Gujarat, which is set to become the largest power plant globally, covering an area almost five times the size of Paris.

AGEL is also targeting the addition of at least 5,000 MW of pumped storage project (PSP) capacity by 2030 in its first phase, with construction already underway for the initial 500 MW PSP in Andhra Pradesh.