Adani Energy Solutions Limited (AESL) has achieved the necessary financial closure for its ambitious $1 billion project involving the establishment of a green high voltage direct current (HVDC) link. The initiative aims to bolster the greening process of Mumbai's power grid by augmenting the infusion of renewable energy into the city's system, thereby meeting its escalating electricity requirements. Scheduled to commence construction in October of this year, the 80 km comprehensive project is a significant step toward reinforcing the region's sustainable energy infrastructure.
AESL secured the credit facility for this endeavor as part of a $700 million revolving project finance arrangement that was initially arranged in October 2021 for AESL's portfolio of ongoing transmission projects. This project financing framework is supported by an international banking consortium comprising nine prominent financial institutions, 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. Undoubtedly crucial to Mumbai's developmental ambitions, the HVDC link aligns with AESL's dedication to providing the city with a more ecologically sustainable future. Anil Sardana, AESL's Managing Director, emphasized the project's significance in advancing the city's decarbonization efforts and facilitating its journey toward achieving net-zero emissions.
This venture becomes even more essential as Mumbai's electricity demand is projected to surge to 5,000 MW by FY25 from the current peak demand of 4,000 MW. With a mere 1,800 MW of embedded generation capacity within the island city, the existing transmission corridors are at risk of encountering capacity constraints, a concern evidenced by a significant power blackout event experienced throughout the entire city on October 12, 2020, due to grid limitations.
By establishing the HVDC transmission link, AESL envisions enhanced grid stability through seamless integration with both state and national grids, providing a robust interface that is poised to address power transmission challenges and foster sustainable growth.
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