Adani Energy Solutions gets $1 billion for Mumbai green HVDC link  project

New Delhi :  Adani Energy Solutions Limited (AESL) has completed its USD 1 billion green high voltage direct current (HVDC) connection project, which would improve renewable energy supplies to Mumbai.

The 80-kilometer multi-faceted project would provide Mumbai with technical advancements. The building of this connection will commence in October 2023, according to AESL (formerly Adani Transmission Ltd).

“AESL has announced successful financial closure for its USD 1 billion Green HVDC link project, which will enable further ‘greening’ of the Mumbai Grid by supplying more renewable power to the city while supporting the city’s rising electricity demand,” the company stated.

HVDC transmission technology outperforms other traditional transmission methods because it stabilises power distribution networks, where abrupt additional loads or blackouts in one area of the network may cause synchronisation issues and cascade failures.

Furthermore, it is the only technology that is ideal for islands where underwater cables are utilised for power delivery, resulting in minimal energy losses. The connection will bulk infuse an extra 1,000 MW of renewable energy into the city, securing future electricity supplies.

The biggest power distribution firm, Adani power Mumbai Ltd (AEML), has promised to boost the amount of renewable energy in the entire mix to 60% by 2027. “This link is urgently needed by the city and will support its growth ambitions.” It demonstrates our commitment to providing a better and greener future for Mumbai.”The initiative will aid in the city’s decarbonization and net zero journey. “We would like to express our heartfelt gratitude to our banking partners for their ongoing assistance in completing the transaction smoothly, as well as for their continued faith and confidence in AESL,” stated Anil Sardana, MD, AESL.

The credit facility is part of a USD 700 million revolving project financing arrangement signed up in October 2021 for its portfolio of under-construction transmission assets. This Infrastructure Financing Framework (IFF) platform, which supports multiple under-construction assets, provides project access to funds that have been paid back by another project in the portfolio.

“The banking consortium for the platform infrastructure financing framework was comprised of nine international banks, including DBS Bank Ltd, Intesa Sanpaolo S.p.A., Mizuho Bank Ltd., MUFG Bank Ltd., Siemens Bank GmbH, Soci t G n rale, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, and The Hong Kong Mortgage Corporation Limited,” the company said.

From the present peak demand of 4,000 MW, Mumbai’s power consumption is predicted to reach 5,000 MW by FY25. The island metropolis only has 1,800 MW of embedded generating capacity, and the current transmission channels are facing capacity constraints.

Due to grid restrictions, the whole city had a significant power outage on October 12, 2020. The HVDC transmission connection will improve grid stability by connecting to the state and national networks.