Adani Green Limited is one of the largest renewable power companies in India with over

5,800 MW of operational renewable power projects. Besides this, it has a total 20,400 MW
of new projects, of which 11,300 MW are under execution and 3,231 MW are near
construction.

Adani is thus poised to soon become the largest renewable energy in the country. For a
company that started in 2015, this is truly remarkable.

Before we bring you this story of a truly remarkable journey, we urge you to like and share
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While historically the predominant form of energy that a man used was his own muscle
power and that of tamed animals and firewood. The economic growth coincided with the
extensive use of energy and fuel sources such as coal and later oil and gas. Even today they
are the biggest sources of energy for our planet.

While these fossil fuels have contributed to the growth of our economy, they are all
extremely polluting and have contributed to carbon emissions. They are also finite in nature.
So there has been a need to shift to renewable sources of energy. With increasing concerns
about global warming, this has become even more urgent.

While Nuclear and Hyro Energy were the initially popular forms of non fossil fuel energy,
there are multiple safety and environmental concerns with these.

So the predominant sources of renewable energy in the recent have been solar and wind
energy. While they have been around for a few decades, solar energy in particular has
become economically more viable in recent years.

India is seeing one of the largest renewable  energy revolutions in recent years, going from
a country dependent on oil  and coal to a massive shift to wind, solar, and other green
sources of energy.  According to a report done by IBEF, India’s installed renewable energy
capacity grew from 45.9 Gigawatts in 2016 to over 151 Gigawatts in 2021, effectively tripling
in 5 years! The government is targeting a capacity of over 500 gigawatts by 2030! This is the
world’s largest expansion plan into the renewable sector. 
And for those of you who don’t know how big is one gigawatt, well, just one gigawatt of
clean energy is over 3.1 million average solar panels or for normal power usage, it is enough
to turn on 110 million LEDs. So, India’s rising renewable energy sector is being led by the call
to action. India is ranked 3rd globally for total renewable Power capacity addition for the
largest installed capacity of wind power in the world and third largest Market in the world
for new solar photovoltaics capacity.
Adani Green was started by one man, Gautam Adani. At 17 years of age, Gautam
Adani dropped out of college and started working as a diamond sorter in Mumbai. He later
managed his brother's factory and when he turned 23, he started his own import company.
Now about three decades later, that small import company has grown into a mammoth
conglomerate with annual revenue of over $25 billion.
While the initial growth of the Adani group came from Ports and other
infrastructure, a big chunk of its future growth is expected to come from renewable energy.

Adani Green started operations in 2015 and soon thereafter AGEL and Inox Wind together
established a 20 MW capacity wind power project in Lahori, Madhya Pradesh. Also, AGEL
bought Inox Wind's 50 MW wind power project at Dayapar village in Kutch. The project was
conceived by the latter when it won a Solar Energy Corporation of India's capacity bids for
wind power projects connected to the National Grid. In 2015–2016, Adani Renewable
Energy Park Limited, a subsidiary of AGEL, signed a joint venture agreement with the
Government of Rajasthan. In 2017 the company took complete control of the solar energy
portfolio of the Adani enterprises and got itself listed on the National Stock Exchange of
India and the Bombay Stock Exchange.

Adani green has business in solar power, wind power and hybrid Power Solar. As of 30 th
September, its portfolio now consists of

Operational Assets 6,724 MW. It has a further 13,710 MW locked, which are either under
construction or near construction.

Stage Capacity in MW Remarks

Operational 6,724 Incl. 2,353 MW in JV with
Total
Under Construction 10,477 100%
Near Construction 3,233 100%
Total 20,434

Besides this above portfolio, the company has also locked in multiple resources in various
states. This includes

200,000 acres of resource-rich sites in strategic locations

40 GW of sites with geotechnical, resource analysis & design work done

This is a valuable resource available for future expansion.

The Current portfolio is spread over 12 resource rick states. It has PPAs with 19 different
counterparties and 89% of its portfolio has PPAs with sovereign counterparties.

All the PPAs are of 25 year tenure

100% of the portfolio is contracted
The average tariff is INR 2.99 per Unit.
So Adani has to a very large extent de-risked its future income and has also created a provision for
large expansion.

We have seen that its operations were quite modest even at the time of its IPO in 2017, So how did
it scale up? As we have already seen, at the beginning it acquired some assets from Inox and took
over the renewable power assets of Adani Enterprises, It has continued to both build large assets
and acquire multiple assets, which have come up for acquisitions.

In March 2018, upon the acquisition of 49 percent equity shares of Kodangal Solar Parks
Private Limited, the latter became a joint venture of AGEL. In 2019, AGEL acquired the rest
51 percent of the equity share as well.

In mid-2019, AGEL acquired Essel Group's solar power portfolio of 205MW located in
Punjab, Karnataka and Uttar Pradesh for US$185 million (approx. ₹1,300 crores). AGEL has
also agreed to buy out the remaining 480MW solar energy portfolio of the former which
were then, under construction.

While Adani acquired the above-mentioned assets, Its biggest acquisition was of course the
USD 3.5 Billion acquisition of the Assets of SB Energy.

Earlier, in early 2020, French energy company Total S.A. entered into a binding agreement
with AGEL for the investment of US$510 million to acquire a 20% stake in the latter

Through this acquisition Adani Green got 5 GW renewable assets across four states in India
in the various SPVs of Adani Green. The portfolio holds 1,700 MW of operational renewable
assets, 2,554 MW of assets under construction and 700 MW of assets near construction .
Solar capacity accounts for 84% of the portfolio (4,180 MW), wind-solar hybrid capacity
accounts for 9% (450 MW) and wind capacity accounts for 7% (324 MW). Split across 15
projects with an average project size of 330 MW.

Apart from these acquisitions, the company has also built several assets. It has also
successfully bid for some of the largest projects in the world. Some of these are currently
under implementation.

It implemented the Kamuthi plant, which then was the world’s largest single location plant,
in 9 months. The company credits its excellent Project Management Skills for this. This plant
is spread of 2,500 acres, has over 2.5 million modules. It has a capacity of 648 MW. About
8,500 personnel was involved in implementing this project.

In May 2020, AGEL won the world's largest solar bid worth $6 billion by the Solar Energy
Corporation of India (SECI). The bid entails AGEL building an 8000 MW photovoltaic power
plant. In May 2021.

Adani Green Energy (AGEL), has commissioned a 390MW hybrid power generation plant in
Rajasthan, India. Located in Jaisalmer, in May, 2022 and another 600 MW phase of this
cluster in September 2022. This facility is understood to be the first wind-solar hybrid power
plant in the country. This is part of 1,690 MW Hybrid cluster, which is expected to be fully
commissioned this year.

The company is planning similar Hybrid cluster developments of 15 MW in the future. This
location is particularly suitable for such clusters with a Solar irradiation of 2,000 KwH /Year,
which is amongst the highest in India and an ideal wind speed of 6.7 M/Second.

Both wind power and Solar power experience a very high degree of variability. By creating a
hybrid cluster, the variability of output is likely to be reduced.

Further, it uses bifacial modules to get power generation from both sides of the panel.
These are on a Horizontal single-axis panel. The wind turbines are mounted on jacket
substructure extended by a tubular tower to capture higher wind resources. This ensures a Capacity
Utilisation Factor of 46%.

Adani Green has assets spread across 12 different states. This portfolio is managed by an in-
house O&M team of 630 persons. The company does remote management of all its assets.
These assets are connected to its central Energy Network Operations Center. It makes
extensive use of IoT and Machine learning in predictive maintenance.

The company claims that these investments help it keep its O&M costs at 8%. While this is
an impressive number, the assets of the company are quite young. So we will know in time,
how well has this strategy worked for the company.

Adani Green has a highly evolved strategy for the financing of its projects at various stages.
At the Holding Company level, the company has LCs and short term fund requirements for
equipment purchases. During the construction phase, it needs adequate senior debt to
implement the project. Thereafter during the stabilisation phase it needs Working Capital
Finance to manage its liquidity. Once the project has stabilised the company usually does
market refinance to get lower rates and longer tenures.

Some of its funding transactions include.

In late 2019, AGEL became the first Indian company to offer investment-grade US dollar
green bonds worth US$362.5 million to foreign investors. The bonds got listed on Singapore
Exchange Securities Trading Limited (SGX- ST) on 15 October 2019 and they will mature in
2039.

The company has raised a lot of debt from various investor to fund their projects. Adani
Green Energy Ltd (AGEL) has raised USD 1.35 billion debt for its under-construction
renewable energy projects via definitive agreements signed with a group of 12 international
lenders.
In March this year, Adani Green Energy raised a $288 million financing facility by extending
its construction financing framework to 1.64$ billion for its under-construction renewable
asset portfolio through agreements signed with lenders.

The loan conditions are well aligned with the business.

The Summarised consolidated financials of the company are as under

2019-20 2020-21 2021-22

Revenue
EBITDA
PAT
Net Worth
Debt

While the overall debt levels may appear to be very high, the company has clearly thought
of how to manage its debts at various stages of implementation. A significant part of the
assets pertain to projects under construction. Also the projects under construction are
largely funded by non-recourse loans by SPVs.

The green energy business is a highly Investment-driven business Where are a lot of
capital is required to start the green energy plant and Enterprise like Adani Enterprises
already had some green energy assets, further Adani Enterprises was already a large multi-
billion dollar group so the financials and expertise to quickly scale up was already available.

Total Energy SA is one of the largest energy companies in the world, with only Exxon and
Shell being larger than Total. Total took a 20% stake in Adani Energy. This brought a lot of
credibility to Adani Green and has helped in a quicker scaling up in the last 2 years.

Cheap electricity from renewable sources could provide 65 percent of the world's total
electricity supply by 2030. It could decarbonize 90 percent of the power sector by 2050,
massively cutting carbon emissions and helping to mitigate climate change. Asia Pacific
garnered a market share of over 35% and dominated the global renewable energy market in
2021. Asia Pacific is witnessing huge FDIs, rising industrialization, rapid urbanization, and a
rapid growth in the population. All these factors are propelling the demand for the
electricity. The increased pollution levels in the region owing to the previous growth in
industrialization and urbanization has forced the government to focus towards the adoption
of the renewable, clean, and green energy sources.

Well, an increasing number of countries are recognizing the urgent need to

tackle, or slow down climate change. Investing in renewable energy is one of the major
steps. From the Kyoto Protocol to the Paris Agreement, an increasing number of signatories
are joining international environmental agreements to lower emissions of greenhouse
gases. The global renewable energy market was valued at $881.7billion in 2020, and is
projected to reach $1,977.6 billion by 2030, growing at a CAGR of 8.4% from 2021 to 2030.
Thus there are a lot of good opportunities in green energy in upcoming years for Adani
green as well as the for the whole sector.

Adani green has a huge competitive advantage over other companies •Leverage
experience of dealing land & other statutory permissions from other similar business
activities such as Transmission & Real estate Identifying strategic land near substation to
reduce cost of transmission line. Strong In-house design team with vast experience in
Renewable & transmission Standardization & optimization achieved for various technologies
and designs adopted for quick turnaround in engineering activities. Leverage on group
strength of large vendor base with long relations. Influence on Supplier’s by virtue of large
portfolio across group companies. Strong procurement office based in China for better
control on Chinese Vendors. No EPC contracts High Safety standards.

Risk associated with the Adani Green Energy Limited is Land Procurement of
private and government land on a permanent and temporary basis, water supply for the
project, project construction and operations, setting up of labour camps, deployment of
workers, the requirement of materials, transfer of project components, site construction
and related access controls and restrictions. The Company’s exposure to the risk of changes
in market interest rates relates primarily to the Company’s long-term debt obligations with
fixed and floating interest rates. The Company manages its interest rate risk by having a
mixed portfolio of fixed and variable-rate loans and borrowings. In the current year, the
Company’s borrowing from banks, financial institutions, bonds, and related parties is at
fixed rate of interest.

Adani green Energy Limited controversies include Rajasthan Solar Power park local farmers
have opposed to the construction of 1.5 GW solar Park at Pokhran after which high court of
Rajasthan has order status quo.

Allegations against Adani family A subsidiary of Adani Enterprises, which wants to

build Australia’s largest coalmine, has been accused by its own lawyer in India of fraud,
illegal land purchases and other violations over a solar project. The court order stated that
his allegations included that Adani was involved in illegal land purchases, as well as
submitting fraudulent documents to gain a power purchase agreement with a Tamil Nadu
utility, which was later used to gain bank loans worth 23b rupees (A$470m) in March –
2016.

In Sri Lanka, a senior bureaucrat caused a storm when he alleged that the Sri Lankan
government had been subjected to Indian pressure to favor the Adani Group with the
awarding of an energy contract. He alleged that the Sri Lankan president had confided that
India’s PM had insisted that a renewable-energy project be allocated to the Adani Group.
Opposition Leader Ramesh Chennithala accused the LDF government of awarding the power
purchase contract to the Adani Group.
The Kerala State Electricity Board (KSEB) has also refuted the charges that it had caused
financial loss to the exchequer by entering into a power purchase deal with Adani Green
Energy.

It’s nature of business requires Adani to have large dealings with the government for
clearance, land acquisitions and PPAs. So far, Adani is perceived to have managed its
relationships well. Notwithstanding various allegations of proximity with ruling BJP, it
operates successfully in many states ruled by parties opposed to BJP government at the
centre.

Future Plans –
1. Adani group will invest about 70 billion dollars in green energy transition and
infrastructure projects chairman of Adani group Gautam Adani said we are already one of
the world's largest developers of solar power our strength in renewables will empower us
enormously in the effort to make green hydrogen the fuel of the future he added we are
leading the race to turn India from a country over-reliant on import of oil and gas to a
country that might one day become a net exporter of clean energy
2. To enable site-availability for the next phase of Growth ~10.5 GW with High Resource
Potential sites in Maharashtra, Karnataka and Tamil Nadu.
4. Adani green energy has a plan to target 45 gigawatts of renewable energy capacity by
2030 with an investment of 20 billion dollars and develop a 2 gigawatt per year solar
manufacturing capacity by 2022 to 23.
Conclusion –
Future plans of the company are set to invest $70 Billion in India’s green Transition and
further Investment in Green energy.
While Adani green energy has a lot of competitors such and Borosil renewable Limited, GAIL
India, Indian Oil Corporation Limited, JSW Energy Limited, Renew Power and Tata Power
Limited, there is a huge opportunity for all over the next decade to invest in Solar Power.

Further with the focus on competitive bidding for very large plants, Adani has a strong
advantage and with its pipeline, it is poised to become the biggest operator in India.