Adani Electricity Mumbai will build two new transmission lines in the city to strengthen its network. In this project, they will invest over INR 2,000 crore. A senior company official said Adani Electricity's network is getting closer to becoming more environmentally friendly by sourcing up to 60% of the city's energy needs from renewable sources by 2027.
The Thane-Aarey Colony line and the 84 Circuit Kilometer (ckm) in Navi Mumbai’s Kharghar to Vikhroli line, located in the megalopolis's northeastern area, make up the two new transmission lines.
They intend to start working on the project in October this year. By 2025, the Kharghar-Vikhroli line will be completed.
Meanwhile, the Thane line will be operational by 2027, said a senior company representative who did not want to be identified.
This project of transmission involves the development of the city's first-ever 400 kV substation facility. The Kharghar-Vikhroli project constitutes 34 km of 400 kV and 220 kV transmission lines. This also includes a 400kV substation at Vikhroli.
Adani Electricity Mumbai reached the financial closure last week. Adani Transmission its parent company, is executing this project and the company has secured a debt of INR 1700 crore from international lenders.
The official stated, "We will be investing more than INR 2,000 crore for this, of which INR 1,700 crore will be debt-funded." He further added that the project also includes building a 400-kV substation to increase transmission capacity by 1,500 mw because the company anticipates that the megapolis' peak demand will surpass 5,000 mw by FY25 from currently around 4,000 mw.
The company, which serves more than 34 lakh customers, or 6% of the city's total consumers, has made rapid improvements in the city's green energy supply, according to the official. In the last three years, the company has increased its supply of solar and wind power by a factor of ten, from 3% to 30%, up from only 3%.
Three years ago, the Adani group bought the license from Anil Ambani group firm Reliance Energy for INR 18,000 crore and entered the city’s distribution business. When the official was questioned if the company is on course to meet the recent public statement on increasing the green energy mix to 60% by 2027, the official answered in quite an affirmative way and said, "Very much or even earlier given what we have done so far."
"We'll be using a hybrid model of solar and wind. Given our existing performance, the organization is extremely certain that we can maintain or even improve upon it," he said.
The official stated that the project is quite critical from the city’s point. The city’s existing capacity of transmission corridor is not sufficient enough to carry further power into the city. This project would allow for the supply of 1000 mw of more power into Mumbai, helping to satisfy the city's anticipated future demand. In December 2019, Adani was granted permission and received the license for the project.
Last week, Adani Energy Solutions obtained financial clearance from foreign lenders for another USD 1 billion for its green transmission connection project.
This credit line, according to the business, is a part of the USD 700 million revolving project finance effort that will be secured in October 2021 for its portfolio of ongoing transmission assets. DBS Bank, Intesa Sanpaolo, Mizuho Bank, MUFG Bank, Siemens Bank, Societe Generale, StanChart, Sumitomo Mitsui Banking Corporation, and Hong Kong Mortgage Corporation are the ones providing the credit line.
The increased mixture of renewable energy will benefit the company as it will save 70-100 paise per unit in terms of acquisition cost. It will completely pass on this benefit to its consumers as well, said the official.
Share
Tweet
