The Adani Group has been trying to expand its footprint in the power sector globally for quite a while now. Currently, it is planning on cracking a 1.3 billion USD deal for the construction of three power lines in Kenya. The conglomerate already has a power purchase agreement with Bangladesh. It operates variable renewable energy projects in Sri Lanka and Australia as well. The Adani Srilanka and Australia projects have helped the Adani Group in strengthening ties with the neighbouring nations. The company has also been able to earn enhanced revenue from its business operations.
Adani Group Awarded the Deal To Construct Transmission Lines In Kenya:
Adani Transmission has been awarded deals for as much as 1.3 billion USD to construct 388 km of high-voltage transmission lines in Kenya. The Kenya Electricity Transmission Co. has mentioned that it is still in talks with Adani Energy Solutions Limited regarding the further proceedings of the project. The Adani Group has also mentioned that the talks for the project are still ongoing. The Adani Group’s project proposal involves the construction of a new 206 km Gilgil-Thika-Malaa-Konza line. Another 95 km linking Rongai-Keringet-Chemosit and 98 km for the Menengai-Ol Kalou-Rumuruti conduit will also be built.
The Adani Group is currently aiming for an 11.5% cost of debt and a 16% equity internal rate of return. The Kenya Electricity Transmission Company which is also known as the Ketraco is a wholly owned parastatal of the Government of Kenya. It serves as the primary transmission system operator in the country. The company wants a lower 9.5% cost of debt and a 14% internal rate of return. Once the deal becomes successful, the Adani Group will start operating on the various phases of the project.
Adani Group’s Global Ventures in The Power Sector:
The Adani Group is already known for its extraordinary global ventures in the power sector. The conglomerate had earlier entered into a power purchase agreement with the Bangladesh Power Development Board (BPDB) in 2017. As per the agreement, Adani Power is expected to supply 1,496 MW net capacity of power for 25 years. The power will be transmitted through a 400 kV dedicated transmission system which is connected to Bangladesh’s grid from the Godda power plant in Jharkhand. The project was commissioned in June 2023. It was expected to supply 100% of power to Bangladesh.
However, because of the increasing dues following political turmoil in Bangladesh, the interim government of Bangladesh is planning on scrutinising the deal with the Adani Group. There has been a concern regarding increasing dues because of which the Adani Group may find it difficult to supply power on a long-term basis. The Adani Group’s chairman, Gautam Adani, has already written to Muhammad Yunus, the chief advisor of the country, to clear the 800 million USD dues worth of pending bills.
The Adani Group is also currently planning on expanding its green energy footprint. It has already been expanding its hold in the renewable energy sector with the Adani Srilanka wind power projects and solar projects in Australia. The company has plans to develop 1,500 MW of renewable energy projects in Australia within the next five years. It is already planning to start two projects for which the Adani Group has already secured land agreements. Each of these projects will have a capacity of 100 to 200 MW. These two projects will be set up in South Australia and Queensland.
The conglomerate has already started preparing the tender for both projects. The Australia projects are in addition to its 12.1 million USD investments which are planned for the Carmichael coal mine in Queensland and the rail and transport facilities. Although the project faced a lot of obstacles from the opposition, the Adani Group continued to carry out work on the project with full force.
The Adani Group has an excellent presence in Sri Lanka as well. It has plans to invest 440 million USD in the 20-year agreement. This investment is to develop 484 MW of wind power projects in the north-eastern regions of Mannar and Pooneryn. The Adani Srilanka project is currently under legal scrutiny. However, once the clearances are achieved, the Adani Group will once again commence work on the project. This is going to increase the renewable energy capacity of Sri Lanka to a considerable extent. The Adani Group’s control over the power sector will also increase significantly.
Conclusion:
With the recent acquisitions, the Adani Group aims to build an extensive presence for itself in the global power sector. In the upcoming years, we expect the Adani Group to become a part of more such extraordinary ventures in the power sector which will lead it towards success.
