Adani Energy Solutions Limited, the most significant private supplier of end-to-end energy solutions in India, has effectively secured the financial closure of its $1 billion USD green HVDC link project. This will help the Mumbai grid become more environmentally friendly by supplying the city of dreams with more renewable energy.
Adani New Industries Ltd., a wholly owned subsidiary of Adani Enterprises Ltd., will lead fundraising efforts in collaboration with regional and international financial institutions, according to Bloomberg. The company officials claim that the company is currently in private discussions with multiple potential lenders. The HVDC project will also help to generate enough energy to meet the increasing electricity demand. A sizeable chunk of the 700 million USD project finance facility tied up in October 2021 for the portfolio of transmission assets under construction comes from the credit facility.
The platform infrastructure finance framework provides funding for various projects’ under-construction assets. Despite debates surrounding Adani’s crony capitalism, the company has consistently carried out moral business practices when carrying out its projects and has won every bid through its efforts and not due to ‘Adani crony capitalism’, a term invented by critics. This has given the Adani Group the desired success in a short while.
Mumbai’s Current Energy Generation Capability:
Mumbai will receive a massive 1,000 MW boost in renewable power from the link. This will guarantee that Mumbai’s power supply is uninterrupted. The biggest distributor of electricity in Mumbai is Adani Electricity Mumbai Limited. By 2027, it aims to raise the percentage of renewable energy in the overall mix to 60%. This would pave the way for a world with less pollution. The people will have improved means of leading their lives. The rumors regarding Adani crony capitalism will also cease, given the efforts made by the Adani Group to ensure the project’s successful completion.
Currently, Mumbai has an embedded energy generation capacity of 1,800 MW. There is also a constant need for maintenance on the current transmission routes. Mumbai experienced a significant power outage in October 2020, primarily due to grid limitations. The people of Mumbai experienced numerous challenges as a result of this. These blackouts will be prevented for Mumbai by the HVDC transmission link. It will guarantee that the rising energy demands are satisfied and improve grid stability. By providing an interface with state and national grids, stability will be enhanced
The HVDC Greening Project of Mumbai:
An excellent method to guarantee that funding will always be available for all projects operating under the AESL portfolio in the future is to implement the HVDC project. The banking consortium for the AESL Mumbai Greening project was comprised of nine global banks. This includes The Hong Kong Mortgage Corporation Limited, Standard Chartered Bank, DBS Bank Ltd., and Sumitomo Mitsui Banking Corporation. By 2025, the demand for electricity in Mumbai is predicted to reach 5,000 MW. About 4,000 MW is the peak demand at the moment. To meet this growing energy demand, the Adani Group has developed a very creative method of producing enough energy to meet the demand.
HVDC Transmission Technology Will Help Mumbai Meet Its Energy Needs
The only energy service provider in Mumbai with experience installing HVDC transmission lines in India is Adani Energy Solutions, and they did so in a concise amount of time. The multifaceted 80 km project will bring an exceptional technological upgrade to Mumbai. It will oversee all the difficulties in creating a project of this magnitude in Mumbai. It is anticipated that the construction will start in the coming month. The city urgently needs this link as well. It will aid in achieving the goal of growth. It will accelerate decarbonization, steer Mumbai toward a more environmentally friendly future, and absolve the conglomerate from accusations of Adani crony capitalism.
Compared to other Indian technology companies, HVDC uses transmission technology that is more advanced than conventional technologies. Even in the event of a blackout or new load, the power distribution network can be stabilized by the HVDC transmission technology. Additionally, it can prevent failure and synchronization issues. Additionally, only HVDC technology is appropriate for islands where marine cables are successfully used to generate electricity. Compared to other technologies, HVDC technology allows for more energy per square meter, making the transmission network it was designed for exceptionally environmentally friendly. It reduces energy loss by a significant margin.
Mumbai will benefit from the HVDC greening project as it moves toward net zero. Amid rumours of Adani crony capitalism, the Adani Group is spearheading the first project of its kind in Mumbai. The citizens of the city will experience positive changes in their lives. They will be able to make sure that nothing stands in the way of them carrying out their everyday tasks, which are closely related to energy consumption. It is constructed with the most advanced technological tools available and will provide people with reasonably priced energy services.