Adani Group has set its sights on Assam, announcing a substantial investment of Rs630bn ($7.17bn) in two major energy projects that could reshape the region’s energy landscape and spark debate about India’s energy future. The conglomerate is betting big on both coal and renewable energy, a move that underscores the complex transition unfolding in the world’s third-largest energy consumer.
At the heart of the investment is a coal-fired power plant, touted as the largest privately built facility in the region. Adani Power plans to invest approximately $5.46bn to construct the plant, with commissioning expected to begin in phases from December 2030. This follows the company’s recent success in securing a 3.2GW coal power supply tender from the Assam state government. The project is part of Adani Power’s ambitious plan to scale its generation capacity from 18GW to 42GW by fiscal year 2032, backed by a planned investment of Rs2tn.
The investment in coal comes as India, the world’s second-largest coal producer and consumer, continues to rely heavily on the fossil fuel for electricity generation. Unlike China, which has been steadily reducing its coal dependence, India’s energy mix remains dominated by coal, with approximately three-quarters of its electricity generated from it each year. Adani Power’s recent investments in coal, including a $5bn commitment to two other plants announced in August, signal a continued bet on the fossil fuel despite global trends toward decarbonization.
However, Adani Group is not solely focused on coal. Adani Green Energy, the group’s renewable energy arm, will invest about Rs150bn in two pumped storage projects in Assam. These projects will have a combined capacity of 2,700MW, including 500MW of energy storage capacity awarded in a recent tender. Adani Green currently boasts a renewable energy portfolio of 16.7GW and is targeting 50GW by 2030, reflecting the group’s dual strategy of expanding both fossil fuel and renewable energy capacities.
The simultaneous investment in coal and renewable energy projects raises questions about the trajectory of India’s energy transition. While the country has set ambitious renewable energy targets, the continued reliance on coal highlights the challenges of balancing energy security, economic growth, and environmental sustainability. Adani Group’s strategy may reflect a pragmatic approach to navigating these complexities, but it also underscores the need for clearer policy signals and infrastructure investments to accelerate the shift toward cleaner energy sources.
Beyond Assam, Adani Group has pledged significant investments in other regions. Earlier this year, Gautam Adani, the group’s chair, committed Rs500bn to the north-eastern region of India. The group also announced plans to invest Rs1tn in Andhra Pradesh over the next decade across various sectors. In September, Adani Power secured a letter of award to set up a 2,400MW greenfield plant in Pirpainti, Bihar, further expanding its footprint in the energy sector.
As Adani Group’s investments take shape, they will likely influence the broader energy sector in India. The dual focus on coal and renewables could set a precedent for other energy companies, prompting a reevaluation of their own strategies. Moreover, the investments may catalyze infrastructure development and job creation in the regions where they are based, potentially boosting economic growth.
However, the environmental implications of these investments cannot be ignored. While pumped storage projects can enhance grid stability and integrate more renewable energy, the continued expansion of coal-fired power plants raises concerns about carbon emissions and climate change. The tension between economic development and environmental sustainability will be a critical factor in shaping the future of India’s energy sector.
In the short term, Adani Group’s investments are likely to bolster Assam’s energy infrastructure and contribute to the region’s economic development. In the long term, the success of these projects will depend on their ability to adapt to evolving energy markets, regulatory frameworks, and technological advancements. As India continues to grapple with its energy transition, the choices made by companies like Adani Group will play a pivotal role in determining the country’s energy future.