Adani Energy announces financial closure for $1bn Mumbai HVDC Project

Adani Energy Solutions Limited (AESL), India‘s foremost private energy utility, has accomplished the financial closure of a $1 billion initiative – the Green HVDC link project. This monumental Mumbai HVDC Project aims to intensify the city’s shift towards renewable energy by meeting the city’s escalating electricity needs, thereby contributing to a greener grid.

Revolutionizing Financing Structures

This funding milestone is rooted in the $700 million revolving project finance facility that Adani Energy Solutions secured in October 2021. The groundbreaking Platform Infrastructure Financing Framework, the bedrock of this venture, bolsters various ongoing projects. It ensures a cyclical flow of capital: as one project repays, another gains access to funds, promising an unbroken financial backing for Adani Energy Solutions’  entire transmission project lineup.

A consortium of nine prominent international banks, including giants such as DBS Bank Ltd., Standard Chartered Bank, and Société Générale, has rallied behind this novel financing framework.

Mumbai’s Energy Needs and Future Projection

Mumbai’s electricity consumption is on an upward trajectory, projected to reach a staggering 5,000 MW by FY25 from the existing peak of 4,000 MW. However, there’s an evident disparity. The city’s embedded generation capability is capped at 1,800 MW, with existing transmission pathways facing potential overloads. The memory of the citywide power outage on 12th October 2020 due to grid restrictions stands testimony. But with the HVDC transmission link, there’s promise – an additional 1,000 MW of renewable energy will flood into Mumbai, aiding continuous power supply. Complementing this vision, Adani Electricity Mumbai Ltd (AEML), the city’s dominant electricity distributor, has vouched to augment the renewable energy share to 60% by 2027.

Superiority of HVDC Technology

The HVDC technology is unparalleled in ensuring stabilized power distribution, countering sudden load surges or blackouts which can incite network synchronization issues. Especially pertinent for islands relying on underwater cables for power, HVDC remains environmentally efficient, transmitting augmented energy with minimal losses. Adani Energy Solutions proudly stands as India’s sole private contender with a proven record in HVDC transmission line installations, executed in record durations.

This 80 km project, set to commence construction in October 2023, embodies a technological marvel for Mumbai, addressing the intricacies of executing a vast-scale project in such an urbanized setting.

“This link is indispensable for Mumbai’s evolving landscape, mirroring our pledge to gift the city a sustainable future,” articulated Anil Sardana, MD, Adani Energy Solutions. “Our heartfelt gratitude to our banking allies for their unwavering trust in AESL and seamless transaction facilitation.”

The Green Loan certification from Sustainalytics further stamps this facility’s commitment to UN’s Sustainable Development Goals, particularly SDG 7 & SDG 9. Additionally, the innovative finance structure has earned several accolades, including “Asia-Pacific Indian deal of the year 2021”.