The $1 billion Green HVDC connection project, which will enable the provision of additional renewable Energy to the city and sustain its expanding energy demand, was successfully closed financially, according to a Monday announcement by Adani Energy Solutions.
The credit facility is a component of the $700 million revolving project finance program committed in October 2021 for the portfolio of continuing transmission assets owned by AESL. By utilizing money returned by previous projects in the portfolio, this one-of-a-kind platform infrastructure financing mechanism assures constant access to cash for upcoming projects in AESL’s transmission portfolio.
Nine international banks are included in the banking consortium for this financing framework: DBS Bank Ltd., Intesa Sanpaolo S.p.A., Mizuho Bank Ltd., MUFG Bank Ltd., Siemens Bank GmbH, Société Générale, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, and The Hong Kong Mortgage Corporation Limited.
Mumbai’s need for energy is predicted to increase to 5,000 MW by FY25 from its present peak consumption of 4,000 MW, making the Green HVDC connection essential. owing to grid restrictions, the city had a significant power outage on October 12, 2020, owing to capacity issues in the current transmission routes
Through the creation of an interface with both the state and the federal grids, the HVDC transmission connection is intended to increase grid stability. It will provide the city with an extra 1,000 MW of renewable energy, assuring a steady supply of electricity in the future.
The largest power distribution firm, Adani Power Mumbai Ltd (AEML), has pledged to raise the proportion of renewable energy in its entire mix to 60% by 2027.
One benefit of the HVDC transmission technology is its capacity to minimize cascade failures, and synchronization problems, and stabilize power distribution networks. Additionally, it is the alternative that is least harmful to the environment since it transmits more energy per square meter with less energy losses. The only private company in India with knowledge of establishing HVDC transmission lines is Adani Energy Solutions.
The 80 km project will modernize Mumbai’s technology while navigating the challenges of constructing a project of this size in a heavily populated area. The link’s construction is slated to start in October 2023.
“This link is the need of the hour for the city and will support its growth aspirations. It showcases our commitment to offering Mumbai a brighter and greener future. The project will help accelerate the city’s decarbonization and its net-zero journey,” Anil Sardana, MD of AESL.
The building has obtained Sustainalytics’ coveted “green loan” accreditation, demonstrating its support for the distribution of clean energy and compliance with the Sustainable Development Goals (SDGs) of the United Nations. It specifically seeks to achieve SDG 7, which is concerned with ensuring that everyone has access to modern, dependable, and affordable energy services and raising the proportion of renewable energy in the world’s energy mix.
Additionally, it is consistent with SDG 9, which places an emphasis on creating durable, high-quality infrastructure in order to promote economic growth.
