Adani Energy Solutions secures $1 bn financing for HVDC Link project in Mumbai
New Delhi: Adani Energy Solutions on Monday announced the successful financial closure for its $1 billion Green HVDC link project, which will enable supply of more renewable power to the city and support its rising electricity demand. The credit facility is part of the $700 million revolving project finance initiative tied up in October 2021 for AESL’s ongoing transmission assets portfolio.
This unique platform infrastructure financing framework ensures consistent access to capital for future projects in AESL’s transmission portfolio by utilizing funds paid back by other projects within the portfolio. The banking consortium for this financing framework comprises 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.
The Green HVDC link is of vital importance to Mumbai as its electricity demand is expected to reach 5,000 MW by FY25, with the current peak demand standing at 4,000 MW. The existing transmission corridors face capacity constraints, and the city witnessed a major power blackout event on 12 October 2020 due to grid limitations.
The HVDC transmission link is set to bolster grid stability by establishing an interface with both state and national grids. It will inject an additional 1,000 MW of renewable power into the city, ensuring uninterrupted power supply in the future.
Adani Electricity Mumbai Ltd (AEML), the largest electricity distribution company, has committed to increasing the share of renewable energy in its overall mix to 60% by 2027. The HVDC transmission technology offers several advantages, including
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