Adani Energy Solutions Limited (AESL) has acquired long-term funding from a group of Japanese banks to create an HVDC (high-voltage direct current) transmission corridor of 6GW connecting renewable energy generation centres in the West of India with commercial markets in Northern India.

The arrangement is being led by MUFG Bank and Sumitomo Mitsui Banking Corporation (SMBC); it is structured as green financing pursuant to the Equator Principles, which govern the environmental and social risk associated with project financing.

The 950km-long (approx.) line will link Bhadla in Rajasthan to Fatehpur in Uttar Pradesh. The Bhadla solar park has one of the largest solar park aggregations globally. The ±800kV HVDC transmission line will be operational by 2029.

According to the company, the corridor will have the capacity to transmit renewable power sufficient to meet the needs of tens of millions of households. The project is part of India’s plan to expand renewable energy capacity to 500 GW of non-fossil fuel capacity by 2030, which requires expansion of transmission infrastructure.

India has increased solar and wind installations in resource-rich states such as Rajasthan and Gujarat. However, grid constraints have limited the transfer of renewable electricity to industrial and urban demand centres. Long-distance HVDC corridors are used to reduce transmission losses and improve grid stability over long distances.

The project involves collaboration between Hitachi Energy and Bharat Heavy Electricals Limited (BHEL), India’s state-owned engineering company. HVDC systems are used for bulk power transfer over long distances with lower losses compared to conventional alternating current systems over long spans.