Adani Energy wins ₹8,500 crore Andhra Pradesh transmission project for green hydrogen hub

Adani Energy Solutions Ltd (AESL) has secured an inter-state power transmission project worth about ₹8,500 crore in Andhra Pradesh to support proposed green hydrogen and green ammonia projects in the Visakhapatnam region, the company said on Friday.

The project, titled Transmission System for Proposed Green Hydrogen/Green Ammonia Projects in Vizag Area, Andhra Pradesh (Phase-I), was awarded through the Government of India's Tariff-Based Competitive Bidding (TBCB) process, with AESL emerging as the successful bidder.

Winning the project through a competitive bidding process means the company was selected over rival bidders based on the tariff it quoted, a standard mechanism used for awarding large transmission projects.

Powering green hydrogen and data centres

The transmission network is designed to meet an estimated power demand of around 4,500 megawatts (MW) while also catering to the rising electricity needs of data centres and other digital infrastructure planned in the region.

The project is expected to be completed within 30 months.

Green hydrogen production is highly electricity-intensive, while hyperscale data centres require uninterrupted, high-quality power. Building transmission infrastructure is therefore a critical first step before these projects can become operational.

Also read: Why oil prices are surging again—and why some experts see $100 a barrel coming soon

What the project includes

The transmission asset will be housed under the Special Purpose Vehicle (SPV), Vizag Power Transmission Ltd.

The project includes:

• A 4×1,500 MVA, 765/400 kV gas-insulated substation at Pendurthi in Visakhapatnam.


• A 3×1,500 MVA, 765/400 kV substation at Khammam-II.

Once completed, the project will add 1,582 circuit kilometres (ckm) of transmission lines and 10,500 MVA of transformation capacity to AESL's network.

This will take the company's total transmission network to 29,531 ckm and its transformation capacity to 1,33,675 MVA.

The order also pushes Adani Energy's transmission order book beyond ₹80,000 crore, providing strong revenue visibility over the coming years as these projects are executed.

Vizag emerging as an industrial hub

Commenting on the project, Kandarp Patel, Chief Executive Officer of Adani Energy Solutions, said the Vizag transmission project is an important step in building the energy backbone for India's next phase of industrial growth.

He said it would support the development of green hydrogen and green ammonia projects in Andhra Pradesh while strengthening the electricity grid to meet growing demand from digital infrastructure in the Pendurthi-Visakhapatnam region.

According to the company, Visakhapatnam is emerging as a hub for artificial intelligence (AI) and hyperscale data centres, aided by planned subsea cable connectivity and associated industrial infrastructure.

As investments in AI, cloud computing and green hydrogen gather pace, the region's electricity demand is expected to rise sharply, making grid expansion essential to ensure reliable power supply.

Strong earnings momentum continues

The project win comes shortly after Adani Energy Solutions reported a strong June quarter.

The company posted a net profit of ₹1,149 crore, more than doubling from ₹513 crore a year earlier.

Revenue from operations rose 42.4% to ₹9,711 crore, while EBITDA increased 30% to ₹3,008 crore.

The EBITDA margin, however, narrowed to 31% from 33.9% in the year-ago period.

Shares of Adani Energy Solutions closed 1.03%, or ₹17.30, higher at ₹1,701.10 on the National Stock Exchange.