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A Milestone in Sustainable Energy Infrastructure: Adani’s HVDC Transmission Link
Ahmedabad, August 7, 2023: Adani Energy Solutions Limited (AESL), a prominent player in India’s energy landscape, has marked a significant stride toward a greener Mumbai with the successful financial closure of its groundbreaking USD 1 Billion Green High Voltage Direct Current (HVDC) transmission link project. This ambitious initiative not only promises a more sustainable energy supply to the city but also represents a commendable effort to address the growing energy demand in the face of transmission capacity constraints.
Financial Success Amid Green Commitment: AESL’s Innovative Approach
AESL has successfully achieved financial closure of USD 700 million through collaboration with nine international banks, a feat made possible by its under-construction HVDC transmission link spanning from Kudus to Aarey in Mumbai, Maharashtra. The financial achievement reflects AESL’s unwavering commitment to expanding the role of renewable power in its energy mix, aligning with its ambitious target of achieving 60% renewable energy by 2027. A noteworthy milestone is that AESL has already attained its initial goal of 30%.
Technological Marvel to Address Mumbai’s Growing Energy Needs
Mumbai’s ever-increasing energy demand, set to touch 5,000 MW by FY25 from the current peak of 4,000 MW, necessitates innovative solutions. The city’s limited embedded generation capacity of 1,800 MW and existing transmission corridors struggling with capacity constraints underline the urgency of this project. The HVDC transmission link, spanning 80 km, will not only enhance grid stability but also inject an additional 1,000 MW of renewable power into the city. This move by Adani Electricity Mumbai Ltd (AEML), the city’s largest electricity distribution company, plays a pivotal role in ensuring a continuous and uninterrupted power supply for Mumbai.
Greening the City’s Energy Mix: The Impact of HVDC Technology
The HVDC transmission technology chosen for this ambitious project offers numerous advantages. It bolsters power distribution network stability in the face of sudden load changes and blackouts, a critical factor in densely populated urban areas like Mumbai. Moreover, it proves to be an environmentally conscious choice by transmitting more energy per square meter and minimizing energy losses. Adani Energy Solutions’ prowess in installing HVDC transmission lines further solidifies its role as a key player in India’s energy landscape.
Supporting Sustainability Goals with International Recognition
The project’s significance transcends financial achievements; it has earned recognition as a certified “Green Loan” by Sustainalytics. This recognition reinforces the project’s contribution towards advancing the United Nations’ Sustainable Development Goals, specifically SDG 7 and SDG 9. The unique financial framework underpinning this endeavor has garnered widespread acclaim, earning accolades such as Project Finance International’s Asia-Pacific Indian Deal of the Year 2021 and IJ Global’s Portfolio Financing Deal of the Year 2021.
Charting a Greener Course for Mumbai: AESL’s Vision for the Future
The success of AESL’s USD 1 Billion Green HVDC Transmission Link project serves as a testament to its unwavering commitment to a sustainable energy future for Mumbai. The project’s innovative financing structure and environmental stewardship align seamlessly with AESL’s larger vision of powering the city while reducing its carbon footprint. As construction begins in October 2023, this landmark initiative promises to revolutionize Mumbai’s energy landscape, ushering in an era of greener and more resilient power supply.