AESL attains financial closure for $1 billion power project in Mumbai

Adani Energy Solutions Limited (AESL) has announced the successful financial closure of its $1 billion green high voltage direct current (HVDC) link project. This project aims to contribute to the environmental improvement of the Mumbai Grid by supplying additional renewable power to meet the city’s growing electricity demands, the company said in its press release.
The construction of this comprehensive 80 km project is set to commence in October of this year. The funding for this endeavour is part of the previously arranged USD 700 Million revolving project finance facility established in October 2021, specifically designated for AESL’s ongoing transmission asset portfolio.
The financing consortium is composed of nine international banks, including 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 Corporation, and The Hong Kong Mortgage Corporation Limited.
Anil Sardana, the Managing Director of AESL, highlighted the significance of the project for Mumbai’s future growth and its contribution to the city’s decarbonization and journey towards achieving a net-zero environment.
This unique financing structure has earned notable recognition, securing distinctions such as Project Finance International’s Asia-Pacific Indian deal of the year 2021, AAA Asset’s Most Innovative Deal of the year 2021, and IJ Global’s Portfolio Financing Deal of the year 2021.
Mumbai’s electricity demand is projected to increase to 5,000 MW by FY25, from the current peak demand of 4,000 MW. However, the city currently possesses only 1,800 MW of embedded generation capacity, leading to potential capacity constraints in its existing transmission corridors.
To enhance grid stability, the HVDC transmission link will interface with both state and national grids, injecting an additional 1,000 MW of renewable power into the city and ensuring continuous power supply. Adani Electricity Mumbai Ltd. (AEML), the largest electricity distribution company, is committed to increasing the share of renewable energy in its overall energy mix to 60% by 2027.
HVDC transmission technology plays a critical role in stabilising power distribution networks, particularly in scenarios involving new loads or blackouts that could lead to synchronisation issues or cascading failures. Additionally, the technology is well-suited for islands where submarine cables are used for power supply procurement.