Adani group has now extended its range to the clean green energy industry. The sword’s third largest rich man has shared clear intentions of owning clean energy plants for a while now. Recently, Gautam Adani, a Gujarat-based conglomerate, was awarded the USIBC 2022 Global Leadership Award where he talked about his plan to set up clean energy plants.
Adani group will build three Giga factories for manufacturing solar modules, wind turbines, and hydrogen electrolyzers. The initiative has been taken as part of the 70 billion USD investment plan in the clean energy sector by 2030. The Chairman of Adani Group, Gautam Adani has revealed that the group will generate a supplementary 45 gigawatt of renewable energy to increase its previous 20 GW capacity as well as 3 million tonnes of hydrogen. The project will be completed before 2030.
Previously, the Adani group had announced plans to set up 4 Giga factories with an investment of 75,000 crore INR in Gujarat. These 4 Giga factories are integrated Solar Photovoltaic Module factory for solar energy production, advanced energy storage battery factory for intermittent energy storage, electrolyzer factory for green hydrogen production, and fuel cell factory for conversion of hydrogen into mobile and stationary power. The 5g gigafactories will be for power electronics.
In further inquisition, Adani has said the value chain will be fully indigenous and linked with the geopolitical needs of the country. Moreover, he strongly believes that the initiative could further accelerate the goals with contributions from the companies in the US that are willing to collaborate with them. Both companies will mutually benefit from one another. Adani has formerly received the USIBC Global Leadership Award on semiconductors. He has confirmed the plan will be crucial for almost all sectors.
What initiated Adani’s plan to build clean energy factories?
In being asked what initiated his plan of building three Giga factories for generating a clean energy department, he replied that he drew inspiration from the ongoing war for crude oil among the booming countries.
India continues to be the global source for millions of engineers, which is the conundrum of capitalism.- especially for US companies. But, the primary value addition to the businesses take place outside India.
He cited an example to prove his statement stating that the semiconductor plant in India is one of the highly demanded sectors for most Indian engineers and provides employment opportunities to many deployed in India. However, India lacks any semiconductor plant. It can prove to be a drawback for India as India can not remain dependent on the global supply chains and will require the assistance of the US with technology transfer.
Adani took the initiative which could prove to be a smart move if it is strategized properly. Here’s why.
Currently, the world is overcoming the trenches of the energy crisis. Europe has already fallen into the loophole of the surging energy crisis. India is no way better than other countries.
In April, India witnessed an acute power shortage due to the unavailability of coal supplies accounting for more than 100 million units of energy shortage on eight days over the course of the month.
The situation resulted in discom companies in several states of the country being forced to roll blackouts or local shedding to ration power. The power problems were mainly due to problems with the evacuation and stockpiling of coal at thermal power plants, combined with the rise in prices of imported coal for coastal plants and the high costs of the exchange of power.
An analysis made by an executive working with Climate Risk Horizons showed that if India was able to achieve its renewable target, the country would have been able to overcome the battling energy crisis. The power shortage would have been lessened by the additional generation from solar and wind, allowing the coal plants to store the restricted stocks for evening peak times when solar energy would not be practical. The initiative would have led to the conservation of at least 4.4 million tonnes of coal.
It seems like the Adani group has learned from the loss as they plan on averting the upcoming energy crisis by progressing toward the renewable energy track.
Edited by Prakriti Arora