Adani Electricity Mumbai, a prominent leader in the city’s energy sector, unveiled a substantial investment exceeding Rs 2,000 crore in the development of two novel transmission lines. This strategic initiative marks a significant stride in fortifying the city’s energy grid as the company advances toward its target of sourcing 60 percent of Mumbai’s energy from renewable sources by 2027.
The two transmission projects in focus are the 84 CKm Kharghar-Vikhroli line, located in Navi Mumbai’s northeastern precinct, and the Thane-Aarey Colony line. The Vikhroli line is scheduled for completion by 2025, while the Thane line’s construction will commence immediately after the first line’s conclusion, with commissioning planned for 2027.
A high-ranking company official, speaking under conditions of confidentiality, disclosed, “Our intent is to commence work on the project this October, with the Thane line following suit and slated for commissioning in 2027.”
The financial closure for these projects was successfully attained last week as Adani Transmission secured a substantial debt of Rs 1,700 crore from international lenders. The official confirmed that a sum exceeding Rs 2,000 crore would be channeled into these projects, with Rs 1,700 crore being allocated via debt funding. Additionally, the project encompasses the establishment of a 400-kV substation, set to augment transmission capacity by 1,500 MW. This augmentation is in anticipation of Mumbai’s peak energy demand, projected to surpass 5,000 MW by FY25, up from the present 4,000 MW.
The official underscored the company’s remarkable strides in bolstering the city’s green energy supply. In just three years, Adani Electricity Mumbai has elevated the contribution of solar and wind power from a mere 3 percent to an impressive 30 percent. This growth has been instrumental in serving over 34 lakh customers, constituting 6 percent of the city’s total consumers.
When probed about the company’s ability to fulfill its recent pledge of achieving a 60 percent green energy blend by 2027, the official exuded confidence, stating, “We intend to pursue a hybrid approach incorporating both solar and wind energy. Given our present achievements, the company is well-poised to not only meet but potentially exceed this goal.”
The transmission lines project encompasses the development of Mumbai’s inaugural 400 kV substation facility. The Kharghar-Vikhroli project encompasses a span of 34 km of 400 kV and 220 kV transmission lines, complemented by a 400 kV substation situated in Vikhroli. This venture holds pivotal significance for the city as the existing transmission corridor’s capacity falls short of accommodating additional power influx. Upon completion, this initiative will facilitate an additional 1,000 MW of power delivery to Mumbai, thereby catering to the city’s burgeoning energy needs. Adani secured the license for this project in December 2019.
Adani Energy Solutions recently secured financial closure for an additional USD 1 billion from global lenders for its green transmission link project. This credit facility forms a part of the USD 700 million revolving project finance initiative set in motion in October 2021 for its ongoing transmission assets portfolio. Eminent institutions partaking in this credit line include DBS Bank, Intesa Sanpaolo, Mizuho Bank, MUFG Bank, Siemens Bank, Societe Generale, StanChart, Sumitomo Mitsui Banking Corporation, and Hong Kong Mortgage Corporation.
The heightened utilization of renewable energy sources is poised to deliver substantial cost efficiencies for the company. Potential savings in the range of 70-100 paise per unit are anticipated, and these benefits will be duly passed on to customers. Notably, despite the higher costs associated with nighttime load factors, approximately 50,000 out of 34 lakh customers have chosen green power, underscoring a burgeoning interest in sustainable energy sources.
It is noteworthy that Adani Electricity Mumbai does not possess any in-house green power generation capabilities within the city. Hence, the company will rely on external procurement to satisfy the surging demand for green energy.
