CompanyGraph
Adani Green Energy Limited
ADANIGREEN · NSE India · India
Unlocks stranded renewable resources in Rajasthan and Gujarat by building generation capacity and grid evacuation infrastructure together, where state transmission utilities cannot.
India's solar and wind resources are concentrated in states remote from industrial demand, so generation capacity at those sites delivers no contracted electricity without dedicated evacuation infrastructure — and because state transmission utilities lack the capital and coordination capability to build that infrastructure at the pace of renewable deployment, Adani Green controls the physical pathway from resource to grid by constructing transmission lines in parallel with generation assets. That control is what makes 25-year power purchase agreement obligations fulfillable and what allows renewable energy certificates — instruments industrial consumers must hold for statutory compliance — to accumulate, making both contract payments and certificate flows contingent on sustained grid connectivity rather than generation output alone. Transmission line capacity between the Rajasthan and Gujarat sites and demand centres is therefore the single throughput ceiling: curtailment occurs the moment generation exceeds evacuation capacity, and because grid connectivity approvals from Power Grid Corporation of India cannot be accelerated by capital expenditure alone, the approval queue caps the rate at which new generation capacity translates into deliverable megawatt-hours. This entire mechanism depends on Adani Transmission remaining a creditworthy, regulatorily compliant counterparty, because financial stress or regulatory action affecting that entity would sever the coordination between generation and evacuation, leaving fixed-tariff power purchase agreement obligations exposed to forced curtailment with no short-run substitute available.
How does this company make money?
Fixed tariff payments per megawatt-hour are received under 25-year power purchase agreements with state electricity boards. Renewable energy certificates are sold through India's national REC trading platform as a separate income stream. Capacity utilization factor payments are received for grid-connected renewable generation, tied to the proportion of contracted capacity that the grid connection makes available.
What makes this company hard to replace?
Existing power purchase agreements with state electricity boards specify delivery points and transmission arrangements that are embedded in the contracts and cannot be easily reassigned. Dedicated transmission infrastructure connecting remote generation sites to particular grid delivery points is physically fixed to those locations. Renewable energy certificate banking arrangements accumulate value over multi-year compliance cycles, creating continuity incentives for the industrial consumers who hold them.
What limits this company?
Transmission line capacity between the remote Rajasthan and Gujarat generation sites and the demand centers in Delhi, Mumbai, and industrial corridors is the single throughput ceiling: curtailment — forced reduction of output — occurs the moment generation exceeds evacuation capacity, regardless of irradiation or wind quality at the site. Grid connectivity approvals from Power Grid Corporation of India cannot be accelerated by capital expenditure alone, so this approval queue caps the rate at which new generation capacity translates into deliverable contracted megawatt-hours.
What does this company depend on?
The mechanism depends on power purchase agreements with state electricity boards such as Gujarat Urja Vikas Nigam and Tamil Nadu Generation and Distribution Corporation; solar panels and wind turbines imported under India's customs duty structure; land lease agreements with farmers in Rajasthan and Gujarat; grid connectivity approvals from Power Grid Corporation of India; and renewable energy certificates under India's REC mechanism.
Who depends on this company?
State electricity boards in Gujarat, Rajasthan, and Maharashtra rely on contracted renewable capacity to meet state renewable purchase obligations mandated by the Central Electricity Regulatory Commission — failure to receive contracted power leaves them in breach of those obligations. Industrial consumers including cement and steel manufacturers depend on renewable energy certificates to comply with India's Perform, Achieve and Trade scheme for energy efficiency, and losing access to those certificates exposes them to statutory penalties.
How does this company scale?
Solar panel installation and wind turbine deployment replicate across similar terrain and climate conditions within each Indian state at relatively low incremental effort. Land acquisition and state-level regulatory approvals resist scaling because each state operates under different land revenue laws, electricity board procurement policies, and political relationships with farming communities, making each new site a distinct negotiation.
What external forces can significantly affect this company?
India's goods and services tax structure affects the cost of renewable energy equipment. Monsoon pattern changes alter seasonal generation profiles across different climate zones, affecting the predictability of output. China trade policy affects solar panel import costs and supply chain availability, since India's panel supply is substantially import-dependent.
Where is this company structurally vulnerable?
The transmission-generation integration depends on Adani Transmission operating as a creditworthy, regulatorily compliant counterparty. Regulatory scrutiny or financial stress affecting any major Adani entity that restricts Adani Transmission's access to project financing — or its ability to obtain new grid connectivity approvals — would sever the coordination mechanism, leaving generation assets built without matching evacuation capacity and forcing curtailment against fixed-tariff power purchase agreement obligations.
Supply Chain
Wind Turbine Supply Chain
The wind turbine supply chain is governed by three structural constraints that set it apart from conventional manufacturing: component scale — modern turbine blades exceed 80 meters in length and cannot be containerized, forcing specialized transport logistics that dictate where manufacturing and installation can occur; site-specificity — every turbine installation is engineered for local wind profiles, soil conditions, and grid connection, eliminating the possibility of standardized deployment; and rare earth magnet dependency — direct-drive turbines require neodymium permanent magnets, binding the expansion of wind energy to the concentrated and geopolitically sensitive rare earth supply chain.
Solar Panel Supply Chain
The solar panel supply chain is shaped by three structural constraints that interact to determine who can participate and at what scale: polysilicon purification requires 99.9999% purity — the same constraint that shapes semiconductors but applied at commodity scale — creating a capital-intensive bottleneck that gates the entire downstream chain; cell and module manufacturing operates on thin margins at enormous scale, driving extreme consolidation where China produces roughly 80% of global solar panels; and the chain from quartz mining through polysilicon, ingot, wafer, cell, module, to rooftop installation spans seven distinct stages, each with different economics, different geographies, and different competitive dynamics.