Thursday, March 23rd, 2023 22:25:59

Crisis on green energy sector due to Adani dispute

Updated: February 4, 2023 2:17 pm

The country’s green energy sector may face a crisis due to the Adani Group dispute. Adani Group had prepared big investment plans in the green energy sector in collaboration with various states. But in the Hindenburg Report, questions have also been raised on Adani Group’s companies, working in the green energy sector and their market value is continuously falling. Therefore, it is being speculated that the company’s investment in the green energy sector may be affected due to lack of capital. This can also create difficulties in achieving the target set in the country’s green energy sector.

Adani Renewable Energy Holding Limited is the flagship company of the Adani Group, which invests in the green energy sector through its various subsidiaries. Adani Group has achieved about 20 GW of green power generation capacity through various companies in the green energy sector. The group has rights over several ports in the country. Gautam Adani himself had announced in September last year that his company would invest $70 billion to produce clean energy at ports.

The group had also set a target of adding 3 million tonnes of hydrogen power capacity to its green energy fleet by 2030. Recently, this company set a target of green energy production with an investment of $150 billion in a joint venture with the Rajasthan government. But the way these green energy companies are in trouble after the Hindenburg report came out, energy experts believe that it may affect green energy production and future plans.

Through Solar Energy Corporation of India, Adani Group had also tied up in green energy generation in the PPA model. This agreement signed in December 2021 was termed as the biggest PPA agreement ever. In this agreement, a target of 4667 MW power generation was fixed. But this agreement can also be affected by the latest dispute. Many other similar big agreements may also be overshadowed by this dispute.

However, the country’s Union Energy Minister RK Singh has claimed that the crisis on the Adani Group will not affect the country’s green energy production or the target set. The government has more than a dozen companies working in the world’s largest green energy sector, through which there is an option to achieve future green energy goals. He has assured that there will be no impact on energy production from the green energy sector.

In the United Nations International Conference on Climate Change (COP-26), India has set a target of achieving 40 per cent of its total energy requirement from green and renewable energy sources by 2030. Although the government claims that it has achieved the target of getting around 30 per cent green energy, energy experts believe that the country is yet to achieve the target of around 20 per cent. It may take time to reach the set target.

According to data from the Ministry of New and Renewable Energy, India has reached number four in the world in terms of installation of solar power equipment. At present, India has achieved a capacity of about 61.97 GW of power generation. The country has set a target of producing 5 MT of green hydrogen gas by 2030. It is estimated that foreign investment of about $ 10 billion can be received in this sector this year. With this, India can reach a very strong position in the target of green energy production by this year.

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