Adani Green Energy aims to have 45 GW of renewable energy by 2030

In order to reduce emissions and assist India in achieving its carbon neutrality goal, billionaire Gautam Adani's renewable energy company plans to install 45 GW of renewable energy capacity by 2030. Adani Green Energy Ltd. has 8,316 megawatts (8.3 GW) of operational renewable energy capacity and another 12,118 MW that is either about to be built or is currently being worked on.

By 2030, they stated, the objective is to increase this 20,434 MW (operational plus projects in the planning stage) to 45,000 MW, or 45 GW. They also stated that AGEL plans to construct about 3 GW of solar and wind energy generation capacity each year. The massive French energy company TotalEnergies owns 19.7% of AGEL. Recently, Qatar Investment Authority (QIA) and US investment firm GQG Partners each acquired a 2.8% share in the business.

They claimed without providing any information that AGEL has a good idea of how it will pay for the increase in renewable capacity. In order to transition to achieving a net zero carbon emission objective by 2070, India is seeking a renewable energy capacity by 2030 of around 10%, which AGEL is now creating.

In addition to AGEL, major initiatives to switch to green energy have been announced by state-owned NTPC, Tata Power, ReNew Power, and Acme Solar. Adanis are effective, according to Rajiv Jain of GQG, who invested in the company at the time. "For instance, they receive payment in 60 days as opposed to 260 days for a rival. Our prediction is that the company will produce higher profits given their efficiencies.

A 25-year fixed-tariff power purchase agreement (PPA) with an average portfolio tariff of Rs 3.02 per unit exists in terms of revenue visibility, according to sources. Analysts are confident that the company's stock will be continuously recycled despite concerns about AGEL's valuation, which is 32 times its book even after adjustment. They note that the cash flow produced each year will serve as an equity contribution for the following project. As a result, it is anticipated that the return on equity would increase further.

Green energy is abundant in nature and doesn't emit greenhouse gases because it comes from renewable resources like wind and sunlight. AGEL is utilising this rich energy source, which is present in areas like Gujarat and Rajasthan.