Ahmedabad-based edible oils, infrastructure, and energy conglomerate Adani enterprises have announced to invest $20 billion in renewable energy over the course of the coming 10 years. Previously in June, rival Reliance Industries (RIL) had announced its venture into green energy by a $10 billion investment in the same over the coming three years.
With plans of investing in power generation, manufacturing, transmission, and distribution, the company claimed to triple its renewable power generation capacity over the next four years. Adani currently has 12.5 GW installed and 7 GW of a planned thermal power capacity.
Speaking at the JP Morgan India Investor Summit on Tuesday, Gautam Adani said, “Over 75% of Adani’s capital expenditure until 2025 is in green technologies. The group is the world’s largest solar power producer if generating, under construction, and contracted projects are included”.
“This also opens up several new pathways for us, including setting up one of the largest green hydrogen projects in the world. Our actions clearly indicate that we are putting our money where our mouth is: Over 75% of our planned Capex until 2025 will be in green technologies. Today, of our EBITDA from utilities, 43% is already from the green business,” he added.
Adani’s investment plans come close on the heels of similar green energy initiatives of rival Ambani, who is setting up an integrated, renewables energy ecosystem in Jamnagar, Gujarat. RIL plans to invest in solar power generation and manufacturing, hydrogen production, e-fuels, and energy storage under its “New Energy and New Materials” division.
The mega investments in green energy come amid pressure from governments and investors on companies reliant on fossil fuels to cut their carbon footprint to fight climate change.
Adani has 4,920MW of operational renewable energy generation capacity and another 5,124MW under execution. The group’s ambition to produce the world’s cheapest green energy mirrors the ambitious vision of Ambani, who on 3 September said India could make green hydrogen the most affordable fuel option by bringing down its cost to $1 per kg within a decade. Green hydrogen, used as fuel in industry and automobiles, has little or no carbon emissions.
On climate change, Adani also hit out at the developed economies that are criticising the pace of India’s climate reform and pressuring New Delhi to announce a net-zero goal. “The economic and industrial might of the West sits on a carpet of carbon soot several centuries deep. A hundred years ago, today’s climate reformers were burning over 800 million tonnes of coal – that is more coal than what India produces today. From pre-industrial times until now, India accounts for only 3% of the extra carbon in the atmosphere and will eventually end up consuming less than 8% of the entire remaining carbon budget,” he said.
He further added, “In my country, more than a quarter-billion households and millions of small businesses that generate jobs rely on the availability of cheaply produced electricity. To switch off that power source without an economical alternative in place would put hundreds of millions of people on an accelerated path to darkness.”