Nestled amidst the barren yet potent expanses of India’s Kachchh district, a mere eighteen kilometres from the freshly constructed airstrip near Khavda village, stands a control room that commands an ocean of solar panels. These panels, collectively capable of generating 2,000 megawatts (MW) of clean energy, are part of Adani Green Energy Limited’s (AGEL) flagship hybrid renewable energy facility. The landscape is punctuated by soon-to-be operational wind turbines, all within the 538 square kilometres of land—approximately five times larger than Paris—leased for this ambitious project. With an investment of Rs 1.5 lakh crore, this site is poised to set new benchmarks in the realm of renewable energy.
The current facilities at Khavda, which came online in the closing weeks of FY24, represent just the beginning. AGEL aims to scale up the plant’s capacity to an astounding 30,000 MW by 2030, securing the title of the largest single-location renewable energy operation globally. This colossal endeavour is set to contribute two-thirds towards the listed company’s ambitious goal of a 45,000 MW cumulative renewable capacity within the same timeframe—a significant leap from the present capacity of 10,934 MW.
Approximately 150 kilometres to the south, another formidable presence in the clean energy sphere takes shape. Here, in the Mundra special economic zone (SEZ), Adani New Industries Limited (ANIL) operates an integrated solar photovoltaic (PV) and wind turbine production base. ANIL, a subsidiary wholly owned by Adani Enterprises Limited, has a solar PV cell and module production potential of 4,000 MW and wind-generated capabilities of 1,500 MW. However, the company’s vision extends far beyond these figures, as it aims to boost the production of key upstream raw materials such as polysilicon, ingots, and wafers, creating an end-to-end manufacturing ecosystem.
Vneet Jaain, a director on the ANIL board, envisions a robust future for the company: wind capacity soaring to 5,000 MW and a solar manufacturing ecosystem stretching to at least 10,000 MW. The company’s aggressive targets include reaching a wind capacity of 1,000 MW by March 2025 and an added 2,500 MW by March 2027, with solar manufacturing pacing to meet its goals in the next three and a half years. To achieve these figures, ANIL plans to channel nearly Rs 30,000 crore into scaling up manufacturing capacities, serving both domestic demand and international markets.
The rise of India’s solar PV module production is starkly evident, with the nation’s annual capacity at 64,500 MW as of December 2023. The Approved List of Models and Manufacturers (ALMM), which prioritizes domestic manufacturers to foster local industry growth by excluding foreign players, has an aggregate capacity of 37,400 MW. Following a temporary suspension for FY24, the ALMM order has been reinstated for the current financial year, with exceptions granted only for projects that have already secured their solar PV modules prior to March 31, 2024.
This regulatory environment, bolstered by the Production Linked Incentive (PLI) scheme—a project with a Rs 24,000 crore outlay aiming to propel the domestic solar PV module manufacturing sector—is poised to offer unparalleled market access and incentivize capital expenditure. Benefiting from this scheme are companies like Adani Infrastructure Private Limited and other industry players. Projections by Mercom envisage India’s solar PV module manufacturing capacity surmounting the 1,50,000 MW mark by 2026.
The ALMM restriction has little bearing on AGEL’s generation business, as its secured power purchase agreements (PPAs) are largely exempt, ensuring the company’s operational ease and flexibility in sourcing. Chinese modules, widely renowned for their affordability, remain an accessible option for AGEL. Raj Kumar Jain, AGEL’s business head, emphasized during the Q3FY24 earnings call that nearly 98% of their locked-in PPAs are outside the purview of ALMM, affording them the luxury of sourcing internationally without concern for basic customs duty (BCD), which is passed through via the Solar Energy Corporation of India (SECI) or respective DISCOMs.
AGEL’s pioneering Khavda facility is strategically located in one of India’s regions with the highest solar irradiation, second only to Ladakh. Despite the harsh environmental conditions—a salt desert remotedly placed and virtually uninhabited—AGEL has proficiently engineered solutions to harness this natural abundance. The plant adeptly weatherproofs its operations against corrosive saline monsoon accumulations and high-velocity summer dust storms. Come FY25, the Khavda plant will introduce an additional 4,000 MW of solar capacity and 1,000 MW of wind capacity, targeting a 2030 mix of 26,000 MW solar and 4,000 MW wind energy.
The logistical challenges of housing approximately 8,000 workers near the remote plant have been met by AGEL’s extensive provision of residential quarters and camps. Given the dearth of surface water in the arid region, the company has drilled about 200 metres below ground to secure potable groundwater, as relayed by a site engineer. The impracticality of water-intensive storage solutions, like pumped-storage hydropower to counter intermittency issues, has led AGEL to consider alternative locations for such storage and to evaluate battery technologies for future implementation.
At the Khavda site, innovative solutions are deployed, such as robotic waterless cleaning machines, imported to conserve precious water resources. The installed solar PV modules are bi-facial, maximizing power generation effectiveness, and are equipped with horizontal single-axis trackers (HSAT) to optimally angle the panels following the sun’s trajectory.
Power evacuation from the plant is another area where Adani Energy Solutions Limited has made significant progress, having commissioned a 3,000 MW capacity with plans to establish an additional 6,000 MW. The Power Grid Corporation of India Mirror’s this expansion with its own sizable evacuation goals of 19,500 MW. The future indeed looks radiant for AGEL’s renewable energy juggernaut, steadily powering on from the vast deserts of Kachchh.
(Note: The site visits to Khavda and Mundra facilitating this report were organized by the Adani Group.)
