Adani Green Energy Reports Robust Q1 FY24 Results and Outlines Ambitious Renewable Energy Goals

Gautam Adani of Adani Group

Adani Green Energy (AGEL), India’s largest pure-play renewable energy company, has announced its financial results for the quarter ending June 30, 2023. With a staggering operational capacity of 8,316 MW, AGEL continues to maintain the country’s largest operating renewable energy portfolio.

In Q1 FY24, AGEL witnessed a remarkable 70 percent year-on-year increase in the sale of energy, reaching 6,023 million units. This growth can be attributed to strong capacity additions that have bolstered the company’s performance.

The solar portfolio Capacity Utilization Factor (CUF) showed significant improvement, rising by 40 basis points year-on-year to 26.9 percent in Q1 FY24. This was made possible by consistent high plant availability and improved solar irradiation, showcasing AGEL’s commitment to operational excellence.

The wind portfolio also experienced an impressive 34 percent increase in the sale of energy, driven by robust capacity additions. However, the wind CUF slightly reduced due to relatively lower wind speeds compared to the previous year.

AGEL’s solar-wind hybrid portfolio of 2,140 MW demonstrated outstanding performance, reporting a strong hybrid CUF of 47.2 percent, an increase of 380 basis points. This success was supported by the implementation of technologically advanced solar modules, including bifacial modules and horizontal single-axis trackers, along with high plant and grid availability and improved solar irradiation.

The substantial growth in revenue, EBITDA, and cash profit was primarily a result of a capacity addition of 2,516 MW over the past year. AGEL’s consistent industry-leading EBITDA margin is attributed to best-in-class Operations & Maintenance (O&M) practices, enabling higher electricity generation at lower O&M costs.

In a significant development, AGEL received a favorable order from the Tamil Nadu Electricity Regulatory Commission to reinstate the Power Purchase Agreement (PPA) tariff for the 47 MW operating solar project at Kamuthi, Tamil Nadu. The tariff was revised to Rs 7.01 per unit, leading to a one-time upside of Rs 103 crore and an annual recurring upside of Rs 14 crore. This development means that the entire 648 MW operating solar portfolio at Kamuthi now operates at the PPA tariff of Rs 7.01 per unit.

AGEL’s Run-rate EBITDA stands strong at Rs 7,645 crore, while the Net Debt to Run-rate EBITDA ratio as of June 2023 is 5.3x. The company’s prudent capital management approach has resulted in operationalizing significant capacities, leading to higher EBITDA and lower leverage levels.

Amit Singh, CEO of Adani Green Energy Ltd, highlighted the company’s commitment to producing low-cost green electrons through operational excellence, technology innovation, and the use of Digital and Artificial Intelligence-based solutions. He credited the team’s dedication for achieving consistent strong financial and operational milestones.

Looking ahead, AGEL aims to further its contribution to renewable power capacity by reaching 45 GW by 2030. Solar, Wind, and Solar-Wind hybrid solutions will be the major contributors to this goal. Additionally, the company emphasizes the importance of long-term clean storage structures like pumped hydro to enable seamless integration of renewables into the grid, marking its dedication to combat climate change challenges.

AGEL’s sustainable and innovative approach towards renewable energy continues to pave the way for a greener and more sustainable future in India.