October 28, 2021

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Adani, RIL, Tata bet big on green energy






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Green energy space is witnessing big investment commitments from the leading Indian corporate houses like Adani Enterprises, Tata Power and Reliance Industries in recent months. Adani Enterprises on Tuesday announced a $20 billion (nearly Rs 1,46,000 cr) investment in renewable energy supply chain over 10 years.

The announcement from the port-to-power conglomerate came after Mukesh Ambani announced a Rs 75,000-crore investment over the next three years in green energy in June.

According to an Economic Times report, Tata power is also looking to raise about Rs 5,500 crore ($750 million) for its green business six months after pulling out of negotiations with Malaysia’s Petronas for up to $2 billion investment.

Adani Enterprises:

Gautam Adani, chairman of Adani Enterprises, said that the group will triple its renewable power generation capacity over the next four years. The current installed renewable energy capacity of the company is 15 Gw.

The company will foray into green hydrogen production, turn its ports into net carbon zero by 2025, and power all data centres with renewable energy. Adani said the port business would be the first one in the group to be net zero by 2025.

The conglomerate also plans to spend more than 75 percent of its capital expenditure until 2025 in green technologies.

Adani Green Energy Ltd (AGEL) had bought SB Energy’s 4.9 Gw portfolio at an enterprise value of $3.5 billion in May. With the acquisition, it became the largest renewable energy firm in the country. The company has now cumulative 25 Gw of developed and under construction renewable energy projects.

With the announcement of Rs 1,46,000-crore new investments in this space, the company now pits against the global giants like the Italy-based Enel spa, which has a renewable power generation capacity of 48.6 Gw, and next in the pecking order China Energy Investment Corp (China Energy).

Reliance Industries (RIL)

Reliance Industries’ Chairman and Managing Director Mukesh Ambani, in the group’s annual general meeting (AGM) in June, had announced a Rs 75,000 crore investment in the renewable energy space over the next three years.

He had said that RIL was launching the new energy business with the aim of bridging the green energy divide in India and globally. Ambani had added that Reliance will set up 100 GW of solar power generating capacity by 2030.

Mukesh Ambani, speaking at the International Climate Summit 2021 earlier this month, said that the company had already started developing the green energy complex in Jamnagar.

Ambani had also expressed optimism over hydrogen fuel, saying that India can set an aggressive target to bring down the cost of hydrogen to $1 dollar per kilogram.

Tata Power:

Six months after pulling out of negotiations with Malaysia’s Petronas for up to $2 billion investment, Tata Power has reportedly restarted fundraising efforts for its renewables business.

According to an Economic Times report, the company is looking to raise Rs 4,000-5,500 crore ($500-750 million) for Tata Power Renewables Energy (TPREL), the subsidiary of listed Tata Power. Renewable energy comprises over a third of Tata Power’s power capacity of 13 GW.

The company has a stated plan to phase out coal-based capacity and expand its clean and green capacity to 80 percent by FY30.

NTPC:

State-run power generation company NTPC in June received the go-ahead from Ministry of New and Renewable Energy (MNRE) to set up a 4750 MW renewable energy park at Rann of Kutch in Khavada, Gujarat. This will be India’s largest solar park to be built by the largest power producer of the country.

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