Introduction to Adani Energy Solutions Ltd (AESL)

In a significant move towards enhancing India's renewable energy landscape, Adani Energy Solutions Ltd (AESL), a leading player in the energy sector, has successfully secured a substantial power transmission project valued at approximately Rs 2,800 crore in Gujarat. This project marks AESL's sixth major win this fiscal year, further solidifying its position as a key player in India's energy infrastructure development.

Project Overview

The project, titled "Transmission System for Green Hydrogen/Ammonia Manufacturing Potential in Mundra, Gujarat," is designed to supply green electricity for the production of green hydrogen and green ammonia. This initiative aligns with India's ambitious renewable energy goals and contributes to the global push towards cleaner energy sources.

Key Components of the Project

• Upgradation of Navinal Substation: The project involves upgrading the Navinal (Mundra) electrical substation by installing two large 765/400kV transformers. This upgrade will significantly enhance the substation's capacity to handle high voltage transmissions efficiently.

• Construction of Transmission Lines: A 75 km long 765kV double-circuit transmission line will be constructed to connect the Navinal substation to the Bhuj substation. This infrastructure expansion will ensure reliable and efficient transmission of green energy to support the production of green hydrogen and ammonia.

• Enhanced Transmission Infrastructure: With this project, AESL will expand its transmission infrastructure by adding 150 circuit kilometers (cKM) of transmission lines and increasing its transformation capacity by 3,000 megavolt-amperes (MVA). This expansion will enhance AESL’s total transmission network to 25,928 cKM and its transformation capacity to 87,186 MVA.

Impact on AESL and the Energy Sector

Boost to Transmission Ebitda

The successful execution of this project is expected to significantly boost AESL's transmission Ebitda. According to recent analyses by Elara Capital, AESL's transmission Ebitda is likely to double to Rs 7,600 crore by FY27E, driven by India's aggressive renewable energy targets.

Demand Surge in Distribution Operations

The project will also drive demand for AESL's distribution operations, particularly in the Mundra SEZ, where energy demand is projected to surge from 50MW to 5GW. This increase will push the regulated asset base (RAB) to Rs 1,500-2,000 crore, further enhancing AESL's operational capabilities.

Contribution to Green Energy Goals

By focusing on green hydrogen and ammonia production, AESL is contributing to India's broader strategy of transitioning towards cleaner energy sources. Green hydrogen, produced from renewable energy sources, is seen as a critical component in reducing carbon emissions across various industries, including transportation and manufacturing.

Competitive Bidding Process

The project was awarded to AESL under the Tariff-Based Competitive Bidding (TBCB) mechanism, with PFC Consulting Limited serving as the bid process coordinator. The Special Purpose Vehicle (SPV) for the project was formally transferred to AESL on March 20, 2025.

Conclusion

AESL's successful bid for the Rs 2,800 crore project in Gujarat underscores its commitment to driving India's renewable energy agenda. As the country continues to push for sustainable energy solutions, companies like AESL are playing a pivotal role in shaping the future of the energy sector.

---