India Green Energy Corridor Powers 60 Million Homes
Newzdaddy Business Updates
Secures Financing from a Consortium of Japanese Banks
AESL has secured financing to build a green HVDC transmission backbone to strengthen the evacuation of renewable power by connecting Rajasthan with India’s national grid
A 950 km HVDC line will connect Bhadla, Rajasthan, to the industrial and transport hub of Fatehpur, Uttar Pradesh
The ±800 kV HVDC link will evacuate 6 GW (6,000 MW) of renewable energy—enough to power 60 million households.
The project showcases a strong India–Japan partnership in driving global clean energy transition:
To deploy Hitachi Energy’s advanced HVDC technology in collaboration with BHEL
Two major Japanese banks—MUFG and SMBC to be the leading financiers of the project
These points reflect a wider shift in how India is building its clean energy system. Renewable power generation has grown rapidly, especially solar power in desert regions like Rajasthan. However, clean power is only useful if it can be delivered safely and quickly to cities and factories with high demand. High-voltage direct current (HVDC) is widely recognised as the most efficient way to transmit large amounts of electricity over long distances with minimal losses. Countries such as China, Germany, and Brazil already use HVDC corridors as part of their green transition, and India is now expanding in the same direction.
Adani Energy Solutions Ltd. (AESL), India’s largest private energy services company, has secured long-term financing from a consortium of Japanese banks for its flagship high-voltage direct current (HVDC) transmission project, a green evacuation corridor designed to strengthen the flow of renewable power across northern India.
Long-term financing is critical for transmission projects because they involve heavy upfront investment and long operating lives. By securing funds from Japanese lenders, AESL has ensured stable capital at predictable costs. Japan has a strong track record in financing infrastructure projects across Asia, especially in power, transport, and urban systems. Such funding also sends a positive signal to global investors about the safety and reliability of India’s power sector reforms.
The project will play a central role in evacuating renewable energy from Rajasthan’s solar-rich regions and delivering it into India’s national grid, supporting the country’s expanding clean power demand.
Rajasthan is home to some of the world’s largest solar parks, including the Bhadla Solar Park, which benefits from high sunlight and vast open land. India’s clean power demand is rising not only because of population growth, but also due to electric mobility, metro rail networks, data centres, and manufacturing hubs. Without strong transmission lines, renewable energy can be wasted during peak generation hours. This corridor is meant to reduce that risk.
Configured as a high-capacity ±800 kV HVDC network with an evacuation capacity of 6,000 MW, the 950-kilometre corridor will connect Bhadla in Rajasthan to Fatehpur in Uttar Pradesh. Scheduled for commissioning by 2029, the link is expected to become a critical green transmission artery—enabling large-scale renewable integration while strengthening grid stability for some of India’s most energy-intensive urban and industrial centres.
Ultra-high voltage levels like ±800 kV allow power to travel long distances with fewer losses compared to traditional alternating current lines. Fatehpur sits close to major demand clusters in northern India, including Delhi-NCR and the industrial belts of Uttar Pradesh. Grid stability is especially important as renewable energy depends on the weather, and HVDC systems help control power flow more precisely during fluctuations.
The asset is part of the Adani Group’s integrated clean energy platform. Rajasthan remains a key generation hub for Adani Green Energy Limited (AGEL), whose projects already supply clean power to AESL’s subsidiary, Adani Electricity Mumbai Limited (AEML). AEML currently integrates more than 40% renewable energy into its supply mix, positioning Mumbai among the world’s largest cities with substantial sustainable power penetration.
This integration shows how generation, transmission, and distribution are being linked under one clean energy strategy. Mumbai’s high renewable share is notable because large cities usually depend heavily on coal-based power. Such models are often studied by other global cities looking to cut emissions without risking power shortages.
The financing—led by Japanese banking partners MUFG Bank Ltd. and Sumitomo Mitsui Banking Corporation (SMBC)—underscores sustained international confidence in India’s renewable infrastructure build-out. The project is further supported by advanced HVDC technology from Hitachi Energy, delivered in collaboration with Bharat Heavy Electricals Limited (BHEL), leveraging India’s domestic manufacturing ecosystem. Together, these partnerships reflect Japan’s leadership in critical transmission technologies and India’s push to deepen local manufacturing under its Make in India push.
Such collaborations help transfer global technology into Indian factories, building local skills and jobs. HVDC equipment requires high precision and safety standards, and domestic manufacturing reduces import dependence over time.
The strengthening India–Japan financial and industrial corridor is also reflected in AESL’s recent BBB+ (Stable) credit rating from Japanese agency JCR, aligned with India’s sovereign rating—signalling parallel confidence in both the country’s policy framework and AESL’s balance sheet.
Credit ratings matter because they influence borrowing costs. A stable outlook suggests that lenders expect the company to manage risks well, even in a sector going through rapid change.
Kandarp Patel, CEO, AESL, said, “This project marks a defining step in building India’s green transmission backbone. The continued support from our Japanese partners—including leading banks and Hitachi—reflects the depth of the India–Japan partnership and our shared commitment to enabling a sustainable energy future. AESL remains focused on developing resilient, future-ready transmission infrastructure to accelerate India’s energy transition.”
India has set long-term goals to cut carbon emissions and expand non-fossil power capacity. Transmission projects like this one are often less visible than solar panels or wind turbines, but they are just as important in making the energy transition work at scale.
The financing has been raised under AESL’s sustainable debt framework, aligned with the Equator Principles, enabling participating lenders to classify the facility as a Green Loan and reinforcing AESL’s commitment to responsible growth and global ESG standards.
Green loans require strict reporting on environmental impact, which improves transparency and accountability. This also helps global investors track how their money supports climate goals.
Latham & Watkins and Saraf & Partners acted as borrower’s counsel, while Linklaters and Cyril Amarchand Mangaldas advised the lenders on the transaction.
The involvement of leading international and Indian law firms highlights the complexity and global nature of such large infrastructure deals, underlining how India’s green energy projects are now part of the wider global financial system.
