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Two state officials told Reuters that Andhra Pradesh signed three renewables investment pacts worth $16 billion with three companies, including Adani and an affiliate from Singapore’s GIC sovereign asset fund.
According to officials, the investment commitments were made with Adani Green Energy, Greenko-backed by GIC and India’s Aurobindo Realty & Infrastructure at the World Economic Forum in Davos.
The investments will create 38,000 new jobs, they said. However, they declined to name the official as the south Indian state has yet to officially announce the details of the pacts.
The agreement with Gautam Adani are to create green energy projects, including a 3,700 Megawatt pumped hydro storage facility and a 10,000 Megawatt solar power plant. This will require an investment of approximately 600 billion Indian rupees ($7.74 billion).
Greenko or Aurobindo will continue to provide the rest, which will be involved in projects related to wind, solar, and hydro power.
“Andhra is determined to lead this sector. One official said that the green energy projects would be for solar, wind, and power storage. This will help push towards a decarbonized economy.
Y.S. Jagan Mohan Reddy, the chief minister of the state, addressed one of the panel discussions at Davos’ Swiss Alpine resort. Jagan Mohan Reddy stated that the state has the potential of increasing its renewable energy capacity to as high as 33,000 megawatt.
India plans to build 450 GW renewable energy capacity in 2030 in an effort to reduce carbon emissions and clean up the air in its cities.
Adani and Mukesh Ambani, a fellow Indian billionaire, are competing to be the frontrunners in Prime Minister Narendra Modi’s efforts to increase green energy capacity within the country’s second most populous.
Analysts say that both men are working to increase their clean energy credentials. Investors pay more attention and make decisions based upon ESG ratings.