Adani’s green energy unit has signed a deal to sell 4.7GW of solar power to the Indian state’s RE company. This is part of a larger deal struck over a year ago when Adani Green Energy agreed to provide 8GW of solar power to the state-run Solar Energy Corporation of India (to in turn sell to state governments). Adani has pledged to help India’s government reach its 2070 net zero target. The announcement came shortly after Greenko Group issued India’s first US$1bn green bond since COP26. Greenko is backed by sovereign wealth funds in Abu Dhabi and Singapore. The bond was 2.5x oversubscribed.
With 1.4bn people, India has a unique challenge in moving away from the highly polluting coal it relies on, while still increasing the amount of electricity it generates. At COP26, India’s Prime Minister stated that he wanted half of India’s energy requirements to be met by renewables within the coming decade. Adani Green Energy has made a number of acquisitions this year. Its biggest was a US$3.5bn deal for Softbank’s Indian RE business (providing 4,954MW of renewable assets). India’s energy transition is projected to cost US$500bn to US$1.4trn by 2040, according to IEA forecasts.