Adani Energy Solutions Limited (AESL) on Monday said it has achieved financial closure for its $ 1 billion green high voltage direct current (HVDC) link project, that will increase renewable energy supply to Mumbai.
The 80-km multi-faceted project will offer a technological upgradation to the Mumbai city. The construction work for this link will begin in October 2023, AESL (erstwhile Adani Transmission Ltd) said in a statement.
AESL has announced successful financial closure for its $ 1 billion Green HVDC link project, which will enable further greening of the Mumbai Grid by supplying more renewable power to the city while supporting its rising electricity demand, it said. HVDC transmission technology is superior to other conventional technologies as it stabilizes power distribution networks, where sudden new loads or blackouts in one part of the network may lead to synchronization problems and cascading failures.
The link shall bulk inject an additional 1,000 MW of renewable power into the city, thus ensuring uninterrupted power supply in future. Adani Electricity Mumbai Ltd (AEML), being the largest electricity distribution company, has committed to increasing the share of renewable energy in the overall mix to 60 per cent by 2027.
The project will help accelerate the city's decarbonization and its net zero journey. We would like to express our sincere appreciation to our banking partners for their continued support in completing the transaction smoothly and for their enduring faith and confidence in AESL, said Anil Sardana, MD, AESL.
Mumbai's electricity demand is expected to touch 5,000 MW by FY25, from the current peak demand of 4,000 MW. The island city has only 1,800 MW of embedded generation capacity and the existing transmission corridors face capacity constraint risks.