Adani to invest $60B in India's power sector by 2032
What's the story
Adani Group, led by industrialist Gautam Adani, has announced its plan to invest $60 billion in India's power sector by 2032. The investment will be focused on renewable energy, generation, and transmission/distribution. The company plans to ramp up its renewable energy capacity from the current 14.2GW to 50GW by FY30 with an investment of $21 billion.
Investment breakdown
Investment in transmission and distribution capabilities
The Adani Group's renewable energy push will be led by Adani Green Energy Ltd (AGEL), which develops and operates large-scale solar and wind farm projects. The company also plans to invest $17 billion in building transmission and distribution capabilities through Adani Energy Solutions Ltd (AESL). This investment will include setting up 30,000km of transmission lines by FY30 to meet India's growing energy needs.
Thermal capacity boost
Boosting thermal power capacity
The Adani Group also plans to invest $22 billion through Adani Power by FY32, boosting its capacity from 17.6GW to a whopping 41.9GW. This move comes as the company looks to maintain a stable supply amid rising demand and renewable variability. Notably, Adani Power is India's largest private thermal power producer with capacities spread across multiple states including Gujarat, Maharashtra, and Karnataka.
Market potential
India's electricity market growth
The Adani Group's ambitious plans come as India emerges as one of the fastest growing electricity markets in the world. The nation's overall installed capacity is expected to grow at a CAGR of 11% to touch 1,000GW by FY32 from 475GW in FY25. This growth presents investment opportunities worth over $500 billion across different segments such as renewables and thermal power.