Power Transmission & Distribution Company Deepens Its Footprint in Khavda with the Award of 7 GW Renewable Energy Evacuation Transmission Network
From Rs 28.35 to Rs 1,049.95 per share, the stock gave multibagger returns of 3,600 per cent in a decade.
Adani Energy Solutions Ltd (AESL), India’s largest private transmission and distribution company and part of the globally diversified Adani portfolio, said that it has completed the SPV acquisition of the Khavda PhaseIV Part-A transmission project after receiving a letter of intent (LOI) from REC Power Development and Consultancy Ltd. The award of this project further strengthens AESL’s position as a leader in India's energy transition and consolidates its position as the largest private-sector transmission player in India.
Khavda IVA Power Transmission Ltd, a special purpose vehicle (SPV,) set up by RECPDCL for evacuating 7 GW of Renewable Energy (RE) from Khavda RE park, under Phase IV Part A package, has been acquired by AESL to execute the project. The Khavda IVA transmission line, part of National Grid, will help evacuate 7 GW of RE by connecting 765 kV double circuit lines from Khavda to Lakadia and Khavda to Bhuj (both in Gujarat) and setting up a transformation capacity of 4,500 MVA.
Khavda, the world’s largest renewable energy park, with a planned generation capacity of 30 GW, will immensely contribute to India’s decarbonization journey. The award of this project to AESL boosts the availability of critical transmission infrastructure required for the evacuation of clean energy. The Adani Group’s focused approach will also ensure the transformation of Khavda from a barren stretch of land into a landmark in India’s net zero journey.
AESL won the project through the Tariff-Based Competitive Bidding (TBCB) process and will commission the project in the next 24 months on a BOOT (Build, Own Operate, and Transfer) basis and maintain it for the next 35 years. The company will invest ~Rs 4,091 crore to build the ~298 km (596 ckm) transmission project. The project also includes setting up 300 MVAr STATCOM and 3x1500 MVA, 765/400 kV Inter-Connecting Transformers (ICTs) with 1x330 MVAr, 765 kV and 1x125 MVAr, 420 kV bus reactors.
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About Adani Energy Solutions Ltd (AESL)
AESL, a key player in the Adani portfolio, is a multifaceted energy company operating in various sectors, including power transmission, distribution, smart metering, and cooling solutions. As India's largest private transmission company, AESL boasts a vast network of 21,783 ckm and a transformation capacity of 61,686 MVA. In its retail electricity distribution business, AESL serves over 13 million consumers in Mumbai and Mundra SEZ. The company is actively expanding its smart metering business, aiming to become a leading integrator in the field. With its integrated offerings, including parallel licenses, competitive retail solutions, and a significant share of green power, AESL is revolutionizing the way energy is delivered to end consumers. AESL is a driving force in transforming the energy landscape towards a more reliable, affordable, and sustainable future.
The company has a market cap of Rs 1.24 lakh crore and FIIs & DIIs increase stake in June 2024. The stock is up by 53 per cent from its 52-week low of Rs 687 per share. From Rs 28.35 to Rs 1,049.95 per share, the stock gave multibagger returns of 3,600 per cent in a decade. Investors should keep an eye on this power company.
Disclaimer: The article is for informational purposes only and not investment advice.
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