About 93% of Adani Green Energy (AGEL)’s portfolio has executed power purchase agreements (PPA) with government-owned entities such as Solar Energy Corporation of India (SECI) NTPC, NHPC and state power distribution companies (discoms).
AGEL primarily serves B2B customers such as state utilities and discoms. AGEL has entered into long-term PPAs with discoms to offtake the generated power, the company said in FY24 annual report.
In the indictment, US prosecutors said Adani group chairman Gautam Adani and executives offered to pay bribes to government officials to get state discoms enter into contracts with the SECI to obtain business.
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According to the US court filings, following the promise of bribes to government officials, distribution companies in Odisha, Jammu and Kashmir, Tamil Nadu, Chhattisgarh and Andhra Pradesh entered into power sale agreements (PSAs) with the SECI between July 2021 and February 2022.
Andhra Pradesh’s electricity distribution companies entered into a PSA with the SECI on December 1, 2021, pursuant to which the state agreed to purchase nearly 7 GW of solar power.
In September this year, Adani won the bid to supply 6,600 MW of hybrid solar and thermal power in Maharashtra.
Rise of the company
In early 2016, Adani Green had a single power project with generating capacity of 20 MW. Over the next three years, it grew the business, and by the end of 2018, had entered into long-term contracts pursuant to which it intended to expand its renewable power generating capacity to 1,998 MW, or 1.998 GW, the US SEC said.
The company launched an IPO in 2018.
In 2019, in its annual report, Adani Green said by 2022, it intended to develop a portfolio that will produce 10 GW of renewable power – five times the size of its portfolio at the end of 2018 – and that it was the “best positioned” company “to tap (the) Indian large renewable energy opportunity”.
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