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Business News/ Companies / News/  Adani Energy Solutions secures $1 bn financing for HVDC Link project in Mumbai
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Adani Energy Solutions secures $1 bn financing for HVDC Link project in Mumbai

The credit facility is part of the $700 million revolving project finance initiative tied up in October 2021 for AESL’s ongoing transmission assets portfolio.

The HVDC transmission link is set to bolster grid stability by establishing an interface with both state and national grids.Premium
The HVDC transmission link is set to bolster grid stability by establishing an interface with both state and national grids.

New Delhi: Adani Energy Solutions on Monday announced the successful financial closure for its $1 billion Green HVDC link project, which will enable supply of more renewable power to the city and support its rising electricity demand.

The credit facility is part of the $700 million revolving project finance initiative tied up in October 2021 for AESL’s ongoing transmission assets portfolio. This unique platform infrastructure financing framework ensures consistent access to capital for future projects in AESL’s transmission portfolio by utilizing funds paid back by other projects within the portfolio.

The banking consortium for this financing framework comprises nine international banks, including 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.

The Green HVDC link is of vital importance to Mumbai as its electricity demand is expected to reach 5,000 MW by FY25, with the current peak demand standing at 4,000 MW. The existing transmission corridors face capacity constraints, and the city witnessed a major power blackout event on 12 October 2020 due to grid limitations.

The HVDC transmission link is set to bolster grid stability by establishing an interface with both state and national grids. It will inject an additional 1,000 MW of renewable power into the city, ensuring uninterrupted power supply in the future.

Adani Electricity Mumbai Ltd (AEML), the largest electricity distribution company, has committed to increasing the share of renewable energy in its overall mix to 60% by 2027.

The HVDC transmission technology offers several advantages, including its ability to stabilize power distribution networks and mitigate synchronization issues and cascading failures. It is also the most environment-friendly option, transmitting more energy per square meter while resulting in lower energy losses. Adani Energy Solutions is the only private player in India with experience in installing HVDC transmission lines.

The 80 km project will offer technological upgrading to Mumbai while managing complexities in developing such a large-scale project in a densely populated city. Construction work for the link is scheduled to begin 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 facility has earned the prestigious “green loan" certification by Sustainalytics, supporting the transmission of clean energy and aligning with the UN Sustainable Development Goals (SDGs). Specifically, it aims to advance SDG 7, which focuses on universal access to affordable, reliable, and modern energy services, as well as increasing the share of renewable energy in the global energy mix.

Additionally, it aligns with SDG 9, which emphasizes the development of quality, reliable, sustainable, and resilient infrastructure to foster economic development and improve human well-being.

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Published: 07 Aug 2023, 12:25 PM IST
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