adani: Adani Energy Solutions gets financial closure for $1 billion project

adani: Adani Energy Solutions gets financial closure for  billion project

Adani Energy Solutions Limited (AESL) on Monday announced financial closure for its $1 -billion green high voltage direct current (HVDC) link project.

It will enable further ‘greening’ of the Mumbai Grid by supplying more renewable power to the city while supporting its rising electricity demand, the company said in its press release.

The 80 km multi-faceted project’s construction work for this link will begin in October this year.

The credit facility is part of the $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.
“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 of AESL.

This Platform Infrastructure Financing Framework that funds various under-construction assets offers project access to funds that another project in the portfolio has paid back. Such an effective one-time structure ensures continuous and consistent access to capital for all future projects in AESL’s transmission portfolio, the company said.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.On October 12, 2020, the entire city witnessed a major power blackout event due to the grid constraints.

The company said, 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. AEML being the largest electricity distribution company, has committed to increasing the share of renewable energy in the overall mix to 60% by 2027.”

The HVDC transmission technology stabilises power distribution networks where sudden new loads or blackouts in one part of the network may lead to synchronisation problems and cascading failures. Besides, the technology is suitable for islands where submarine cables are used for procuring power supply.

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