Adani Green Energy Secures 1,250 MW Energy Storage Contract from UPPCL
Introduction:
Adani Green Energy (AGEL), a international leader within the renewable electricity region, has introduced a sizable development in its strength storage talents. The corporation’s fully-owned subsidiary, Adani Saur Urja (LA), has correctly acquired a Letter of Award (LoA) from the Uttar Pradesh Power Corporation Limited (UPPCL). This marks a giant leap forward for the organization within the strength garage area, with the agreement concerning the procurement of 1,250 MW of electricity storage capacity.
This energy storage capacity will be sourced from pumped hydro storage projects. The procurement was secured through an e-reverse auction conducted by UPPCL, showcasing AGEL’s competitive edge in the renewable energy auction process. The agreement includes an annual fixed cost of Rs 76,53,226 per MW (exclusive of taxes) over a period of 40 years, which will commence from the Commercial Operation Date (COD).
This development aligns with Adani Green Energy’s broader growth strategy, which aims to expand its renewable energy capacity to 50 GW by 2030. Currently, AGEL boasts India’s largest operating renewable energy portfolio, which spans 11.7 GW, a testament to its leadership in the sector.
The latest addition further strengthens its position in the renewable energy and storage markets, an area expected to grow substantially in the coming years as the world transitions to cleaner energy sources.
Adani Green Energy Secures Landmark 1,250 MW Energy Storage Contract with UPPCL:
Financial Performance:
Adani Green Energy’s financials also paint a positive picture. In its Q3 FY25 results, the company reported a 92.2% increase in net profit, reaching Rs 492 crore compared to the previous year’s figure of Rs 256 crore. Sales also saw a 3.1% increase, amounting to Rs 2,286 crore, up from Rs 2,220 crore in Q3 FY24. This strong performance reflects the robust demand for AGEL’s renewable energy solutions and its ability to efficiently scale operations.
Stock Performance:
In the wake of this announcement, Adani Green Energy’s shares rose by 0.46%, trading at Rs 844.20 on the Bombay Stock Exchange (BSE). This uptick in share price indicates positive investor sentiment surrounding the company’s growth prospects, especially following its success in securing this large energy storage contract.
Conclusion:
This milestone reflects Adani Green Energy’s commitment to driving sustainable energy solutions in India and abroad. The focus on pumped hydro storage is particularly significant, as it is seen as a key enabler for the integration of renewable energy into the grid, ensuring reliability and stability by storing energy during peak production periods and releasing it during peak demand.
With its expanding portfolio and strategic investments in energy storage, AGEL is well-positioned to capitalize on India’s growing renewable energy market and contribute significantly to the country’s energy transition goals.
FAQ:
1. What is the latest development with Adani Green Energy?
Adani Green Energy (AGEL) has secured a 1,250 MW energy storage contract from the Uttar Pradesh Power Corporation Limited (UPPCL). This will be sourced from pumped hydro storage projects and will be part of a 40-year contract.
2. What is the financial structure of the contract with UPPCL?
The contract stipulates an annual fixed cost of Rs 76,53,226 per MW (taxes extra) over the entire 40-year period, which will start from the Commercial Operation Date (COD) of the storage facilities.
3. How was this contract awarded?
The procurement was secured through an e-reverse auction conducted by UPPCL, where Adani Green Energy’s subsidiary, Adani Saur Urja (LA), emerged successful.
4. What is the significance of this contract for Adani Green Energy?
This contract is a significant step for Adani Green Energy as it strengthens their position in the energy storage sector, an essential area for renewable energy integration. It also aligns with their goal of achieving 50 GW of renewable energy capacity by 2030.
5. What is Adani Green Energy’s current renewable energy portfolio?
Adani Green Energy currently has the largest operating renewable energy portfolio in India at 11.7 GW. This includes solar, wind, hybrid, and hydropower plants.
6. How has Adani Green Energy been performing financially?
For Q3 FY25, Adani Green Energy reported a 92.2% increase in net profit to Rs 492 crore, compared to Rs 256 crore in Q3 FY24. Sales also grew by 3.1%, reaching Rs 2,286 crore.
7. How did the market react to this announcement?
Following the announcement, Adani Green Energy’s stock price rose by 0.46%, reaching Rs 844.20 on the Bombay Stock Exchange (BSE), reflecting positive investor sentiment.
8. What role does energy storage play in renewable energy?
Energy storage solutions like pumped hydro storage play a crucial role in ensuring grid stability and reliable power supply. They allow for storing excess energy during periods of high production and releasing it during times of high demand, which is key to integrating renewable sources like solar and wind into the grid.
9. What does this contract mean for India’s energy future?
This contract marks a significant move toward enhancing renewable energy storage in India. As India moves toward a greener future, investments in energy storage are crucial to ensuring that renewable energy can be utilized effectively, minimizing energy waste and maximizing supply reliability.
10. What are Adani Green Energy’s future plans?
Adani Green Energy aims to expand its renewable energy capacity to 50 GW by 2030, continuing to lead the transition to cleaner and more sustainable energy sources. The company’s focus on energy storage is central to its strategy, ensuring the efficient use of renewable energy across the country.
Disclaimer
The information provided on www.Barawakar.com is for informational purposes only and does not constitute financial advice. Stock trading is inherently risky, and users agree to assume full responsibility for their trading decisions, including any loss of capital. While we strive for accuracy, we do not guarantee the completeness or reliability of the information presented.
Users should conduct their own research and consult with a qualified financial advisor before making any investment decisions. www.Barawakar.com disclaims all warranties and is not liable for any damages arising from the use of this website. By using this site, you agree to these terms.
For any question, please contact us