- The HVDC line will ensure an uninterrupted supply of renewable power to Mumbai.
- The contract, signed with nine international banks, was secured for the $700 million facility obtained in October 2021.
Adani Energy Solutions Ltd. has announced its financial closure of a $1 billion green high voltage direct current (HVDC) transmission link project with nine international banks to supply uninterrupted renewable power to Mumbai, India. According to the statement released on Monday, the HVDC link project will introduce an additional 1,000 megawatts (MW) of renewable power into the city, ensuring a steady electricity supply in the future that will boost technological advancement in Mumbai.
The international banking conglomerate involved in the unique Platform Infrastructure Financing Framework includes DBS Bank Ltd., Intesa Sanpaolo S.p.A., Mizuho Bank Ltd., MUFG Bank Ltd., Siemens Bank GmbH, Société Générale, Standard Chartered Bank, Sumitomo Mitsui Banking Corp. and The Hong Kong Mortgage Corp.
In his comment on the project, the Managing Director of AESL, Anil Sardana, said, “The project will accelerate the city’s decarbonization efforts and its journey towards achieving net zero emissions. We extend our sincere appreciation to our banking partners for their continued support, facilitating a smooth transaction and demonstrating their unwavering faith and confidence in AESL.”
Citing the 2020 blackout in Mumbai, the company said that the HVDC transmission is superior to other mainstream technologies, as it stabilises power distribution networks, reduces synchronisation problems and cascading failures that may arise due to sudden new loads or blackouts in one part of the network. AESL also stated that the HVDC method is suitable for islands where submarine cables are used to procure power supply.
The credit facility for the project is a part of the $700 million revolving project finance facility secured in October 2021 for AESL’s portfolio of under-construction transmission assets. This financing platform, the Infrastructure Financing Framework (IFF), provides funds to new projects based on the repayment of previous projects within the portfolio, ensuring continuous access to funds for future projects.