Adani Green Energy shares in focus on report firm may invest $22 bn on capacity expansion

Shares of Adani Green Energy Ltd will be in focus on Tuesday morning after a report suggested the renewable power producer was looking to invest an additional $22 billion to expand capacity by more than five times by 2030.

Adani Green Energy has an operational capacity of 8,316 MW as of September 30. The Gautam Adani-led company added 1,150 MW solar-wind hybrid, 230 MW wind power and 212 MW solar plants over the last one year. It continues to own the largest operating renewable energy portfolio in the country.

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Chief Executive Officer Amit Singh told Bloomberg Television India’s electricity demand was growing 7 per cent annually, adding that a focus on the domestic market before exploring foreign expansion is both in the “national interest and economic interest” for the company. Singh said this at the United Nations COP28 climate summit in Dubai on Monday.

Adani Green Energy's sale of energy jumped 78 per cent YoY to 11,760 million units in H1FY24 on account of capacity addition and improved CUF across solar, wind and hybrid portfolios. The Gautam Adani-led company's solar portfolio CUF (capacity utilisation factor) improved 90 basis points YoY to 25.20 per cent in H1FY24 with improved plant availability and improved solar irradiation. The wind portfolio CUF, on the other hand, improved 360 basis points YoY to 40.2 per cent in H1 FY24 with consistent wind speed and significant improvement in grid availability.

Adani Green Energy shares are up 14 per cent in the last six months but down 40 per cent year-to-date, thanks to the scathing Hindenburg Research report in January this year that resulted in a $150 billion erosion in the market capitalisation of Adani group shares.

For the September quarter, Adani Green Energy reported a 149 per cent YoY rise in profit at Rs 371 crore on a 80 per cent rise in sales at Rs 1,984 crore.

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