Adani Green Energy Limited Q1 FY25 Earnings Call Summary
Earnings Call Details
• Date of Call: July 26, 2024
• Transcript Availability: Announced on July 31, 2024
• Key Executives: CEO Amit Singh, CFO Phuntsok Wangyal
Operational Highlights
• Capacity Target: On track for 50 GW by 2030, including 5 GW of energy storage.
• New Operational Capacity: 250 MW wind power at Khavda, total operational capacity now 11.2 GW.
• Performance Metrics:
• Historical metrics not suitable as benchmarks.
• Expected availability rate of 98-99% for new capacity.
Financial Performance
• Revenue Growth: 24% year-on-year increase to INR 2,528 crores.
• Cash Profit: 32% rise to INR 1,390 crores.
• Credit Rating Upgrade: From ‘A+’ to ‘AA-’.
Borrowing and Pricing Insights
• Borrowing Costs: Average portfolio rate at 9.4%, recent rates between 8.6% and 8.9%.
• Merchant Pricing: Wind pricing above INR 5.5; solar pricing stabilizing around INR 4-4.5.
Pumped Storage Systems
• Project Costs: Closed-loop systems costing INR 4.5-5 crores per MW.
• Efficiency Rates: Expected between 75% and 80%.
Capacity and Revenue Strategy
• Future Capacity Mix: 1,800 MW of 6 GW to be merchant capacity, mainly from wind.
• Revenue Maximization: Focus on pre-commissioning opportunities and securing PPAs for 10 GW.
Market and Regulatory Insights
• Carbon Mechanisms: Potential for carbon CBAM rules in India, driving growth in C&I transactions.
• REC Prices: Expected to rise due to government enforcement of carbon efficiency programs.
Additional Insights
• Pumped Storage Capex: Competitive due to site-specific factors.
• Impact of Import Duty: Recent solar glass import duty may affect pricing but not directly impact the company.
Conclusion
• Future Focus: Integration of pumped storage with solar and wind projects, securing long-term agreements for 60-70% of capacity, and maximizing returns.

Earnings Call Overview
• Date: May 3, 2024
• Transcript availability announced on May 10, 2024
• Key executives present: Sagar Adani (Executive Director), Amit Singh (CEO)
Company Achievements
• 35% year-on-year increase in greenfield capacity addition
• Total operating capacity reached 10.9 GW
• Financial growth:
• 33% increase in revenue
• 30% rise in EBITDA
Future Plans
• Developing a 30,000 MW renewable energy plant in Khavda
• Targeting 5 GW of pumped hydro storage capacity by 2030
• Increasing renewable energy capacity target from 45 GW to 50 GW by 2030
Strategic Approach
• Selective participation in SECI bids for hybrid/storage projects
• Annual addition of 6,000 to 8,000 MW of greenfield capacity
• Focus on diverse allocation among PPAs, commercial/industrial customers, and Adani Group companies
Capacity and Market Dynamics
• Target of over 6,000 MW for FY25 and FY26
• No anticipated challenges with equipment availability or grid evacuation
• Emphasis on a diverse portfolio to meet growing energy demand
Cost Management
• Leveraging pumped hydro storage as a cost-effective alternative to battery storage
• Competitive cost structure for projects:
• Solar: ~5 crores per MW
• Wind: ~6.5 crores per MW
Transmission and Project Focus
• Need for increased transmission capacity in India
• Focus on large-scale solar and wind projects, avoiding rooftop segment
Solar Project Costs
• Domestic module prices affected by 40% Basic Customs Duty
• Expected decrease in prices as domestic manufacturing capacity increases
Merchant Power Sales
• Current merchant capacity at 5%, projected to rise to 10%
• Excitement about future prospects expressed by Sagar Adani