Adani Energy Solutions completes SPV acquisition of Khavda Phase-IV Part-A transmission project after LOI from REC Power Development and Consultancy

The Khavda IV A transmission line, part of National Grid, will help evacuate 7 GW of renewable energy (RE) by connecting 765 kilovolts (kV) double circuit lines from Khavda to Lakadia and Khavda to Bhuj, both in Gujarat, and setting up transformation capacity of 4,500 MVA.

AESL has won the project through the tariff-based competitive bidding (TBCB) process and will commission the project in the next 24 months on build, own, operate, and transfer (BOOT) basis and maintain it for the next 35 years. The company will invest approximately ₹4,091 crore to build the 298 km transmission project.

Kandarp Patel, Chief Executive Officer, AESL said the investment will not only establish the critical transmission network required to evacuate the planned 30 GW of green power that Khavda will generate but also provide the much-needed grid stability.

Earlier this month, AESL said it has completed its ₹8,373 crore ($1 billion) qualified institutional placement (QIP). According to the firm, the QIP saw significant demand, receiving bids of approximately 6x of the base deal size from a diverse group of investors, including utility-focused US investors entering India for the first time, sovereign wealth funds, major Indian mutual funds, and insurance companies. Following the strong interest, AESL said it was able to fully exercise the green shoe option, raising the total issue size to $1 billion.

AESL said the proceeds from the QIP will be utilised for investment in transmission assets, building the bulk evacuation corridors for renewable power, smart metering business, enhancing energy efficiency and improving network planning. The proceeds will also be used for debt repayment and general corporate purposes, it said.

Shares of the firm were trading over 4% lower on Monday. The stock has gained over 23% in the last one year.