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Synopsis : The Adani Group is rapidly expanding its global presence in the power sector, with significant investments in Kenya, Bangladesh, Sri Lanka, and Australia. The $1.3 billion transmission line project in Kenya marks its second major international energy deal, following a longstanding power purchase agreement with Bangladesh. Meanwhile, the group is also expanding its renewable energy portfolio, with projects in Sri Lanka and Australia, although facing legal and environmental challenges in both regions.
The Adani Group, an Indian conglomerate, is significantly expanding its presence in the global power sector. The group is in advanced talks for a $1.3 billion deal in Kenya, marking its second major international power deal, following an agreement with Bangladesh. This expansion is part of Adani’s strategy to establish a robust global footprint in power infrastructure, with other ventures in Sri Lanka and Australia also in focus.
Expansion in Kenya
Adani Energy Solutions Ltd., a subsidiary of Adani Group, is set to construct three high-voltage power transmission lines in Kenya, spanning over 388 km. This project will boost Kenya’s energy transmission infrastructure under a public-private partnership. The lines include the Gilgil-Thika-Malaa-Konza line (206 km), Rongai-Keringet-Chemosit (95 km), and the Menengai-Ol Kalou-Rumuruti line (98 km). However, both the Kenyan authorities and Adani are still negotiating final terms, particularly concerning debt costs and returns. Kenya’s push for private investment in public infrastructure reflects its current strategy to avoid further borrowing amidst high public debt.
Bangladesh Power Deal
In 2017, Adani signed a power purchase agreement (PPA) with the Bangladesh Power Development Board (BPDB) to supply 1,496 MW from its Godda power plant in Jharkhand, India, via a dedicated transmission system. This agreement, running for 25 years, has seen scrutiny over pricing, with Bangladesh raising concerns over the high cost of coal-powered energy supplied by Adani. Political shifts in Bangladesh have led to renewed examination of the agreement.
Renewable Energy Ventures in Sri Lanka and Australia
Adani is also active in renewable energy. In Sri Lanka, the group has committed $440 million to develop wind power projects in the Mannar and Pooneryn regions, with a capacity of 484 MW. However, legal challenges in the Sri Lankan Supreme Court have emerged, primarily due to environmental concerns and transparency issues in the project’s bidding process. Additionally, in Australia, Adani has secured land agreements for large-scale solar power projects, aiming to add about 1,500 MW of capacity over the next five years. This venture aligns with Adani's broader renewable energy goals and complements its controversial Carmichael coal project.
