Adani Energy Solutions shares in focus as arm looks to invest Rs 2,000 crore in transmission lines

Shares of Adani Energy Solutions Ltd, erstwhile Adani Transmission Ltd, will be in focus on Monday morning after an official at a wholly-owned subsidiary Adani Electricity Mumbai said his company was investing over Rs 2,000 crore to build two new transmissions lines in Mumbai to strengthen its network.  Adani Electricity Mumbai is looking to go greener by sourcing as much as 60 per cent of the energy needed for Mumbai from renewables by 2027, he said.

For the new initiatives, Adani Electricity Mumbai reached financial closure by securing Rs 1,700 crore debt from international lenders for the projects being executed by the parent firm, PTI reported.  

The two new transmission lines would comprise of the 84 ckm Kharghar (in Navi Mumbai) Vikhroli line in the north-eastern suburb of the megalopolis and the Thane-Aarey Colony line. The Vikhroli line will be ready by 2025, as per PTI.

"We hope to begin the work on the project from this October. The Thane line will begin after the first line and will be commissioned in 2027," a senior company official, who did not want to be quoted, told PTI.

"We will be investing more than Rs 2,000 crore for this, of which Rs 1,700 crore will be debt-funded," the official said, adding the project also includes setting up a 400-kV substation which will raise the transmission capacity by 1,500 mw, as the company expects the peak demand for the megapolis to cross 5,000 mw mark by FY25 from around 4,000 mw now.

The official, PTI reported, said the company made rapid strides in improving the supply of green energy to Mumbai where it serves more than 34 lakh customers or 6 per cent of the total consumers of the city, by increasing the supply of solar and wind power by 10 times in the past three years to 30 per cent now from only 3 per cent when three years ago.

Asked if the Adani group company which entered the city's distribution business three years ago by buying out the licence from the now crippled Anil Ambani group firm Reliance Energy for Rs 18,000 crore, is on course to meet the recent public statement on increasing green energy mix to 60 per cent by 2027, the official answered in the affirmative saying “very much or even earlier given what we have done so far.”

"We'll be following a hybrid model of solar and wind and given our current success the company is quite confident of making it or even bettering it," he said.

The transmission lines project involves developing the city's first-ever 400 kV substation facility. The Kharghar-Vikhroli project comprises 34 km of 400 kV and 220 kV transmission lines, including a 400kV substation at Vikhroli.

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