Adani Group pledges $3 billion investment in clean energy
What's the story
The Adani Group is set to invest between ₹25,000-27,500 crore (approximately $3 billion) in its first pumped-storage hydropower (PSH) facility.
This move is part of the group's strategy to gain a competitive edge in India's burgeoning clean-energy industry.
The group's subsidiary, Adani Green, plans to establish a PSH capacity of 5GW over the next five years and increase it eventually to 25GW.
Expansion plans
Adani Group's green energy target and project locations
The Adani Group has revised its original green-energy target for 2030 from 45GW to 50GW.
The initial phase of the project will establish PSH generation facilities in Maharashtra, Andhra Pradesh, Tamil Nadu, and Telangana.
This phase requires an investment of ₹25,000-27,500 crore. Some necessary reservoirs and elevation facilities are already in place.
Information
Adani Group's funding and construction progress
The financial closure for commissioning 3.5GW of PSH capacity has been completed. The 5GW target will be funded by issuing new shares and raising debt. Basic construction work for the first 500MW PSH project in Andhra Pradesh has already begun, with completion expected in FY27.
Market trends
Clean energy expansion in India and Southeast Asia
Indian companies are expanding their clean-energy portfolios as the country is the third largest emitter of carbon dioxide.
In January, the government cleared eight PSH projects worth ₹81,981 crore in five states.
Adani Group's rivals Tata Power, NTPC and JSW have also announced plans to enter this space.
According to Rystad Energy, PSH capacity in Southeast Asia is expected to increase from about 2.3 GW at present to 18 GW by 2033.
Technology shift
PSH technology: A rising trend in clean energy
Pumped-storage hydropower is a type of hydroelectric energy storage that uses two water reservoirs at different elevations.
Electricity is generated when water moves from one reservoir to another through a turbine.
This method of energy generation is gaining popularity among power companies as it can supply electricity around the clock, unlike solar and wind energy.
Currently, fossil fuels account for 64% of Southeast Asia's power generation.