Adani Green Secures $400 Million From International Banks For 750 MW Renewable Power Projects

Adani Green Energy Limited, one of the largest renewable energy companies in India,  secured USD 400 million in financing from a consortium of five leading international banks. The fund will be used for its under-construction 750 MW solar projects in Rajasthan and Gujarat. The projects are expected to go online by November 2024.

The consortium of lenders includes:

• Cooperative Rabobank U.A
• DBS Bank Ltd.
• Intesa Sanpaolo S.p.A.
• MUFG Bank, Ltd.
• Sumitomo Mitsui Banking Corporation

One of the projects is being developed in Rajasthan with a 500 MW capacity and has a long-term power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI). The second one, with a 250 MW capacity, is a standalone merchant power project being implemented at the world’s largest renewable energy park at Khavda in Gujarat.

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AGEL is diversifying revenue streams, along with traditional PPAs, to enhance project revenue and position itself for sustained value creation. Following AGEL’s lead, banks are becoming more comfortable with financing merchant projects, with the transaction marking a sentiment shift in the international banking market.

The USD 400 million construction facility, along with the funding solutions, also provides a syndicated guarantee-backed assurance program in sync with AGEL’s procurement strategy. The transaction paves the way for a sustainable debt structure, developed as part of AGEL’s capital management plan, for financing merchant exposure. 

It marks a milestone for the Indian renewable energy sector as it steers the industry’s transition to the next phase of market integration, with the commitment to deliver low-cost green electrons through the promotion of merchant market projects with the right financing structure, demonstrating overall trust and competitiveness for the Indian renewable energy sector to drive clean energy transition and decarbonization.

AGEL has a 10,934 MW operational portfolio, the largest in India, delivering reliable, affordable, and clean power to the national grid. AGEL’s operational portfolio consists of 7,393 MW of solar, 1,401 MW of wind, and 2,140 MW of wind-solar hybrid capacity. For further details about AGEL’s renewable energ projects in India, explore our database.

What is a Merchant Power Project?

A merchant power project refers to a form of non-utility or independent power generation designed for competitive wholesale power marketplaces. Unlike conventional independent power projects, merchant power plants do not have upfront, long-term power purchase agreements to cover their output Instead, these plants either use an energy exchange or short-term contracts to sell the electricity they produce. These plants are being built to sell to competitive, spot markets. 

Read: Avaada Energy Secures Green Financing of $143 Million for New Solar Project in Gujarat

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