Adani Energy Solutions (AESL), a subsidiary of Indian conglomerate Adani Group, has reached financial closure for its $1bn (Rs82.81bn) green HVDC (high-voltage direct current) link project that aims to supply more renewable energy to the grid in Mumbai in the Indian state of Maharashtra.

The plan calls for further greening of the grid while supporting the rising demand for electricity in Mumbai.

This credit facility was provided by a consortium of nine international banks: DBS Bank, Hong Kong Mortgage, Intesa Sanpaolo, Mizuho Bank, MUFG Bank, Siemens Bank, Société Générale, Standard Chartered Bank and Sumitomo Mitsui Banking.

The city’s electricity demand is expected to reach 5GW by 2025 from its current peak demand of 4GW.

With only 1.8GW of embedded generation, the existing transmission corridors face capacity constraint risks.

The HVDC transmission link can help to enhance grid stability by offering an interface with the state and national grids. This link will bulk-inject 1GW of renewable power into the city for an uninterrupted future power supply.

AESL has committed to increasing the share of renewable energy in the overall energy mix of the city to 60% by 2027.

The 80km project offers upgraded transmission technology while managing all the complexities involved in development. Construction work will begin in October 2023.

HVDC technology is ideal for islands where submarine cables are used for transmitting power. It is able to transmit more energy per square metre while reducing energy losses.

AESL is the only private company with experience in installing HVDC transmission lines in India.

Managing director Anil Sardana stated: “This link is the need of the hour for the city and will support its growth aspirations. It showcases our commitment to offering Mumbai a brighter and greener future. The project will help accelerate the city’s decarbonisation and its net-zero journey.

“We would like to express our sincere appreciation to our banking partners for their continued support in completing the transaction smoothly and for their enduring faith and confidence in AESL.”