Adani Energy Solutions Limited, the largest private end-to-end energy solutions provider in India, has successfully acquired the financial closure of its 1 billion USD green HVDC link project. This will help greening the Mumbai grid by supplying more renewable power to the city of dreams. The HVDC project will also help generate sufficient electricity to meet the rising electricity demand. The credit facility is a huge part of the 700 million USD, which involves the project finance facility tied up in October 2021 for the under-construction transmission assets portfolio. The platform infrastructure financing framework funds different under-construction assets of different projects. Although there were controversies about Adani’s crony capitalism, the conglomerate has always implemented ethical practices while executing its projects and won each bid through its own efforts. This has given the Adani Group the desired success in a short while.
The HVDC Greening Project of Mumbai:
The HVDC project is an effective way of ensuring that there is continuous and consistent access to funds for all future projects that will be operating under the AESL portfolio. Nine international banks formed the banking consortium for the AESL Mumbai Greening project. This includes DBS Bank Ltd., Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, and The Hong Kong Mortgage Corporation Limited. The Mumbai electricity demand is expected to reach 5,000 MW by 2025. The current peak demand is around 4,000 MW. So, to fulfil this increased demand for energy, the Adani Group has come up with a highly innovative approach for energy generation that would suffice for the increased demand.
Mumbai’s Current Energy Generation Capability:
Mumbai presently has 1,800 MW of embedded energy generation capability. The existing transmission corridors also need to be fixed frequently. In October 2020, there was a major power blackout event in Mumbai, which happened mainly because of grid constraints. This brought about a lot of difficulties in the lives of the people of Mumbai. The HVDC transmission link will be able to save Mumbai from such blackouts. It will not only enhance the grid stability but also ensure that the increasing energy demands are met. The stability will be enhanced by offering an interface with the national and state grids.
The link will bulk inject an additional 1,000 MW of renewable power into Mumbai. This will ensure that there is an interrupted power supply in Mumbai. Adani Electricity Mumbai Limited is also the largest electricity distribution company in Mumbai. It has promised to increase its renewable energy supply in the overall mix to 60% by 2027. This would lead the path towards a greener planet. The people will be able to lead their lives in a better way. There will also be an end to rumors about Adani crony capitalism, considering the efforts put in by the Adani Group towards successful completion of the project.
How Can The HVDC Transmission Technology Help Mumbai Fulfil Its Energy Needs?
The transmission technology used by HVDC is superior to the conventional technologies used by other technology companies in India. The HVDC transmission technology can stabilize the power distribution network even if there is a new load or a blackout. It can also avoid synchronization problems and cascading fare from failure. The HVDC technology is also the only form of technology that is suitable for islands where marine cables are used effectively for producing power supply. The transmission network designed using HVDC technology is highly environmentally friendly as it can transmit more energy per square meter than other forms of technology. It minimizes energy loss to a considerable extent.
Adani Energy Solutions is the only energy service provider in Mumbai with the experience of installing HVDC transmission lines in India, and that too within a very short period. The 80 km multifaceted project will provide the city of Mumbai with an extraordinary technical upgrade. It will manage all the complexities of developing such a large-scale project in Mumbai. The construction is expected to begin in the upcoming month. This link is also a need of the hour for the city. It is going to support the growth aspiration. It will lead Mumbai to a brighter and greener future, increase decarbonisation, and give the conglomerate a clean chit from the allegations of Adani crony capitalism.
Conclusion:
The HVDC greening project will support Mumbai in its net zero journey. The project is the first of its kind in Mumbai, led by the Adani Group amidst stories of Adani crony capitalism. It is built using the best forms of technology and will also offer affordable energy services to the people. The lives of the residents of the city will change for the better. They will be able to ensure that they face no hindrance at all in conducting their daily responsibilities, which are directly associated with the use of energy.