India is a global leader in renewable energy, with a target of achieving 450 GW of clean power by 2030. But who is the largest and the most successful player in this sector? The answer is Adani Green Energy Ltd or AGEL.
AGEL is India’s largest renewable power producer, with a portfolio of 20.4 GW across solar, wind, and hybrid projects. It is also one of the lowest-cost renewable power producers in the world, with an average tariff of Rs 3.02 per unit, well below the average price of Rs 3.75 per unit in the country.
AGEL’s success has attracted global investors, who have invested $1.63 billion or about Rs 14,000 crore in the company over the past few months, taking advantage of the attractive valuations post the short-seller report that alleged accounting fraud and stock manipulation by the Adani Group, which AGEL denies.
The latest investor to join AGEL’s bandwagon is French energy giant TotalEnergies SE, which announced last week that it will invest $300 million in a new joint venture with AGEL, where both will hold a 50 percent stake. The joint venture will hold a portfolio of 1,050 MW of solar and wind power projects.
This is not the first time Total has partnered with AGEL. The French company already has a 19.7 percent stake in AGEL, making it the largest shareholder after the promoter group. It also has an equal joint venture with AGEL, called AGE23L, that holds a portfolio of 2,353 MW.
Total’s repeated investments in AGEL reflect its confidence in the company’s growth potential and its commitment to support India’s energy transition. Total is one of the world’s leading energy companies, with operations in oil and gas, electricity and renewables. It aims to become a net-zero emissions company by 2050 and has set a target of reaching 35 GW of gross renewable generation capacity by 2025 and 100 GW by 2030.
Other prominent investors who have backed AGEL include GQG Partners, one of the largest emerging market funds; Qatar Investment Authority, one of the world’s largest sovereign funds; and IHC International Holding Company.
These investors have recognized AGEL’s strong execution ability and superior track record in delivering renewable energy projects ahead of schedule and within budget. The company has built most of its portfolio during the post-Covid era and has a record of executing projects in less than a year, as against the permitted period of 18 months.
AGEL has also demonstrated its innovation and leadership in developing hybrid projects that combine solar and wind power generation with battery storage to ensure round-the-clock supply of green electricity. The company has won several prestigious awards for its hybrid projects, such as the world’s largest single-site solar-wind hybrid project of 600 MW at Bhuj in Gujarat and the world’s largest solar-wind hybrid park of 1.69 GW at Khavda in Gujarat.
AGEL’s vision is to reach 45 GW of renewable energy capacity by 2030, which would make it one of the top five renewable energy companies in the world. The company has already done resource assessments for around 40 GW worth of projects across various locations in India and abroad. With constantly upgrading technology and increasing efficiency, there are chances that AGEL could surprise the market with higher output and lower costs.
AGEL is not only creating value for its shareholders, but also contributing to India’s social and environmental goals. The company’s projects have generated employment for over 50,000 people directly and indirectly and have saved over 30 million tonnes of carbon dioxide emissions annually. AGEL is also committed to supporting various community development initiatives in the areas of education, health care, livelihoods and women empowerment.
AGEL is a shining example of how renewable energy can be a game-changer for India’s economy and society. By attracting global investors, AGEL is also enhancing India’s reputation as a preferred destination for clean energy investments. AGEL is truly a renewable energy powerhouse that everyone wants a pie of.
