Image Source: Viestories
As India accelerates its commitment to renewable energy expansion, Amit Singh, CEO of Adani Green Energy Limited (AGEL), has highlighted a fundamental step that renewable energy agencies across India must adopt: identifying precise energy demand in collaboration with states before launching tenders. This prudent approach, according to Singh, will enhance the sustainability and efficacy of renewable energy projects and align investments closely with regional requirements.
Aligning Renewable Growth with State Demand
In a recent statement reflecting on India’s renewable energy trajectory, AGEL’s CEO stressed that agencies involved in solar and wind power development should first engage with state governments to gauge and identify their specific energy demands prior to tendering projects. This approach aims to prevent potential overcapacity, reduce financial strain on utilities, and avoid supply-demand mismatches that have previously challenged the renewable energy sector’s progress.
India is currently targeting an ambitious renewable energy capacity of 500 GW by 2030, aiming to drastically cut carbon emissions and lead the global energy transition. Adani Green Energy, one of the largest renewable firms in the country, has itself committed to expanding its renewable portfolio to exceed 45 GW by 2030, a five-fold increase from its current operational capacity. The company has already signed power purchase agreements (PPAs) covering approximately 19.8 GW out of its 20.6 GW locked-in portfolio, with projects spread across solar power generation and solar panel manufacturing plants, including Gujarat’s significant Mundra solar manufacturing facility.
Challenges with Demand and Tendering Process
The call from AGEL’s CEO also addresses ongoing concerns about muted demand and the risk of overcapacity in renewable power generation. Historically, India has experienced large-scale auction-driven tenders with competitive tariffs pushing solar power rates to record lows (around Rs 2.42 per unit). While these tariffs are beneficial to consumers, they have often led to financial unviability for smaller developers and delayed project execution. Moreover, state electricity distribution companies, which are key buyers of renewable power, have sometimes been hesitant or slow to finalize long-term purchase arrangements, further complicating the demand-supply balance.
AGEL’s leadership underscores that renewable agencies must synchronize closely with state energy requirements to tailor projects that fulfill actual consumption needs and timelines rather than simply focusing on bidding and capacity targets. Such synchronization is expected to reduce stranded assets, optimize tariff structures, and improve the financial health of distribution utilities.
Adani Green’s Strategic Role in India’s Renewable Sector
Adani Green Energy’s market dominance is reflected by its significant investments and strategic partnerships. The company has won some of the largest tenders, including an 8 GW solar power project coupled with a 2 GW solar panel manufacturing commitment awarded by the Solar Energy Corporation of India (SECI). Its Rs 1.12 lakh crore investment over the next five years exemplifies the scale at which the company is pushing India’s clean energy agenda.
The company’s commitment to integrate solar power generation with domestic panel manufacturing aims to strengthen India’s self-reliance while also creating substantial employment and scaling sustainable energy output. This aligns with the government’s broader goals under Prime Minister Narendra Modi’s vision for a 450 GW renewable target and the Paris Agreement commitments.
Moreover, Adani Green Energy is actively expanding its renewable energy portfolio through subsidiaries and long-term PPAs with various states, ensuring de-risked project execution over the coming decade.
Forward Path: Collaborative Planning for Sustainable Growth
The message from Adani Green Energy’s CEO serves as a crucial reminder that India’s renewable revolution demands not just ambitious capacity additions but also strategic planning and collaboration with state governments. This approach ensures that renewable capacity growth is demand-driven, financially viable, and integrative with the broader energy system.
As India marches towards a cleaner energy future, the synergy between central renewable agencies, private developers like Adani Green, and state utilities will be key to managing grid stability, ensuring power affordability, and realizing the nation’s climate goals effectively.
Sources: Times of India, NDTV Profit, Hindustan Times, EQ Mag Pro, 2025
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