Adani Energy Solutions Limited (AESL), India’s largest private utility providing end-to-end energy solutions, on Monday announced the 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 its rising electricity demand, the company announced through an exchange filing.
The credit facility is part of the USD 700 Million revolving project finance facility tied up in October 2021 for its under-construction transmission assets portfolio.
The banking consortium for the platform infrastructure financing framework comprised 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.
Mumbai’s electricity demand
Mumbai’s electricity demand is expected to touch to 5,000 MW by FY25 from the current peak demand of 4,000 MW. The island city has only 1,800 MW of embedded generation capacity and the existing transmission corridors face capacity constraint risks.
HVDC Transmission Link
The HVDC transmission link will enhance grid stability by providing an interface with the state and national grids. The link shall bulk inject an additional 1,000 MW of renewable power into the city, thus ensuring uninterrupted power supply in future.
The 80 km multi-faceted project will offer a technological upgradation to the city while managing all the complexities in developing such a largescale project in a city like Mumbai. The construction work for this link will 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.” said Anil Sardana, MD, AESL.
The Facility is also certified as “Green Loan” by Sustainalytics and shall support the transmission of clean energy and advance the UN Sustainable Development Goal (SDG) 7 and SDG 9.