New Delhi (Agency): Adani Electricity Mumbai, part of the Adani Group, is investing over Rs 2,000 crore to construct two new transmission lines in Mumbai. This move aligns with the company’s plan to strengthen its network and go more green, sourcing as much as 60% of the energy required for the city from renewable sources by 2027.
The two new transmission lines comprise the 84 ckm Kharghar (in Navi Mumbai) Vikhroli line in the northeastern suburb and the Thane-Aarey Colony line. The Vikhroli line is expected to be ready by 2025. “We hope to begin the work on the project from this October. The Thane line will begin after the first line and will be commissioned in 2027,” said a senior company official who chose to remain anonymous.
The company secured Rs 1,700 crore debt from international lenders last week for these projects, which will be executed by its parent company, Adani Transmission. The remaining investment will come from the company itself. “We will be investing more than Rs 2,000 crore for this, of which Rs 1,700 crore will be debt-funded,” the official stated.
This project will also involve setting up a 400-kV substation, which will increase the transmission capacity by 1,500 MW. The company expects the peak demand for Mumbai to cross the 5,000 MW mark by FY25 from around 4,000 MW currently.
Adani has been actively working to increase the supply of green energy to Mumbai, where it serves more than 34 lakh customers, or 6% of the city’s total consumers. Over the past three years, the supply of solar and wind power has increased tenfold to 30% from just 3% three years ago.
When asked about the company’s recent public statement on increasing the green energy mix to 60% by 2027, the official responded positively, saying “very much or even earlier given what we have done so far.” The company plans to follow a hybrid model of solar and wind energy.
One key part of the transmission lines project is developing Mumbai’s first-ever 400 kV substation facility. The Kharghar-Vikhroli project includes 34 km of 400 kV and 220 kV transmission lines, including a 400kV substation at Vikhroli.
This project is vital to Mumbai, as the existing capacity of the transmission corridor is insufficient to carry further power into the city. It will enable an additional 1,000 MW of power to be brought into Mumbai, helping to meet the future demand.
Adani received the license for this project in December 2019. Additionally, Adani Energy Solutions secured financial closure for a USD 1 billion green transmission link project from international lenders like DBS Bank, Siemens Bank, and others.
According to the official, an increased mix of renewable energy will help the company save 70-100 paise per unit in acquisition costs, which will be entirely passed on to customers. Interestingly, 50,000 of the 34 lakh customers have chosen to draw only green power, despite it being more expensive.