Adani Power , a major player in India's energy sector, has announced a significant move into renewable energy infrastructure in Bhutan. The company has formed a partnership with Drukgreenpower to develop a 570-megawatt hydropower project in the Himalayan nation.

Strategic Expansion into Hydropower

The collaboration marks Adani Power's strategic expansion into the hydroelectric power sector, diversifying its energy portfolio beyond thermal power generation. This venture into Bhutan's hydropower market demonstrates the company's commitment to renewable energy sources and cross-border energy partnerships.

Project Details

The planned 570-megawatt hydropower project represents a substantial investment in Bhutan's energy infrastructure. While specific details about the project's location and timeline have not been disclosed, the scale of the project suggests it could significantly boost Bhutan's power generation capacity.

Implications for Regional Energy Dynamics

This partnership between Adani Power and Drukgreenpower could have far-reaching implications for regional energy dynamics:

1. Renewable Energy Focus: The project aligns with the global shift towards cleaner energy sources, potentially reducing the region's reliance on fossil fuels.

2. Cross-Border Cooperation: It exemplifies growing economic cooperation between India and Bhutan, particularly in the energy sector.

3. Energy Export Potential: Given Bhutan's abundant water resources and limited domestic power demand, the project could enhance the country's electricity export capabilities, potentially to India and other neighboring nations.

Adani Power's Growth Strategy

This move into hydropower in Bhutan appears to be part of Adani Power's broader strategy to diversify its energy portfolio and expand its footprint beyond India. The company, known primarily for its thermal power plants in India, is now venturing into international markets and renewable energy sectors.

As more details emerge about this significant partnership and project, stakeholders will be keenly watching its progress and potential impact on both Adani Power's business trajectory and the regional energy landscape.

Adani Power Limited , India's largest private thermal power producer, has received shareholder approval for a 5-for-1 stock split, as the company reports robust financial results.

Stock Split Approval

In a postal ballot concluded on September 4, Adani Power shareholders overwhelmingly approved a sub-division of the company's equity shares. Each existing share with a face value of ₹10 will be split into five shares with a face value of ₹2 each. The move aims to enhance liquidity and make the shares more accessible to retail investors.

The company's authorized share capital will remain unchanged at ₹28,000 crore, but will now be divided into 12,400 crore equity shares of ₹2 each, along with various classes of preference shares.

Strong Financial Performance

Adani Power reported:

• Revenue from operations of ₹56,203.00 crore
• EBITDA of ₹24,008.00 crore
• EBITDA margin of 41.00%
• Profit After Tax (PAT) of ₹12,750.00 crore

Operational Highlights

• Current operating capacity of 18,150 MW
• Plant availability factor of 91.00%
• 88.00% of capacity tied up under long-term Power Purchase Agreements (PPAs)

Expansion Plans

Adani Power outlined ambitious growth targets in its investor presentation:

• Locked-in capacity expansion of 23,720 MW across 13 projects by FY32
• Target capacity of 41,870 MW
• 7,720 MW of new PPAs already secured

Financial Position

The company reported a strong financial position:

• Net debt to EBITDA ratio improved to 1.44x from 9.75x in FY19
• Return on Equity (RoE) of 25.00%
• ₹7,311.00 crore in cash and cash equivalents

Future Outlook

Adani Power is positioning itself to meet India's growing baseload power demand, with plans to add about 30.00% of the 80 GW additional coal-based capacity required by FY32. The company's expansion strategy focuses on brownfield projects and secured equipment orders to ensure timely execution.

With its strong operational performance, expanding capacity, and improved financial metrics, Adani Power appears well-positioned to capitalize on India's growing energy needs and maintain its leadership in the private thermal power sector.