Adani Green Energy Shares Extend Gains For Fifth Straight Session - Know Why

Adani Green Share Price: Shares of Adani Green Energy Ltd. extended gains for the fifth straight session on April 21. The stock gained over 2 per cent in early trade to hit an intraday high of Rs 966.6 apiece on the NSE. The stock gained after the Adani Group company received regulatory clarity from the Central Electricity Regulatory Commission (CERC).

The CERC said in an order released on April 17 that it will not intervene in the transfer of 2,333 megawatt capacity of Azure Power India to Adani Green Energy Limited (AGEL). Notably, the power transfer was a part of a larger 7000-megawatt solar power project situated in Andhra Pradesh.

“In view of the above, the Commission has not been called upon to exercise either its regulatory or adjudicatory function in the present matter, deserving any intervention in this case,” CERC said in the order.

In 2021, the petitioner in the case, Solar Energy Corporation of India Ltd., signed a power supply agreement (PSA) with Andhra Pradesh’s power distribution companies for 7000 MW of power. Out of this 7000 MW, as much as 4667 MW was to be supplied by Adani Green Energy Ltd. and 2333 MW by Azure Power Limited. Later, Azure Power Ltd backed out of the agreement, and Adani Green Energy Ltd agreed to provide the remaining 2,333 MW.

“The Petitioner executed the PSAs with the distribution utilities of Andhra Pradesh for the 7000 MW under Packages II to IV at the tariff of Rs. 2.42/unit. The petitioner entered into the PPAs dated 14.12.2021 for the 4667 MW with Adani Green Energy Four Ltd's SPVs and PPAs dated 16.12.2021 for the 2333 MW with Azure Power India Power Ltd's SPVs,” CERC said in the order.

“In the facts and circumstances, it is respectfully prayed that this Hon’ble Commission may be pleased to take on record PPAs dated 26.12.2023 (11 in number) and PAAs dated 13.03.2024 (3 in number) executed between SECI and Adani for cumulative 2333 MW capacity and the Supplemental PSA dated 29.12.2023 and Supplemental PSA-2 dated 01.03.2024 executed between SECI and AP Discoms and the Government of Andhra Pradesh,” SECI said in its petition.

In 2024, the CERC reserved its order following short-seller Hindenburg Research’s allegations against the Adani Group of running a bribery scheme. The allegations later prompted the indictment of members of the group. However, in its latest order, the CERC has said that it will not intervene in the matter, as the petitioner has only requested the authority to take the replacement of Azure Power Ltd with the Adani Group company in the agreement on record. The authority added that SECI has also not requested approval for the substitution.

“After careful consideration of the submissions made by the petitioner, we observe that the petitioner has not invoked the jurisdiction of the commission with regard to the regulation of the tariff of the generating company under Section 79 (1) (b). The only prayer made the petitioner is to take on record the substitution of one generator with another…” CERC said.

“SECI has not indicated the provisions of the Act under which the Commission is mandated to consider such substitution. Moreover, SECI has not even made any such prayer in the petition for approval of the commission for the substitution of Azure with Adani on record; the only prayer being to take subsequent developments on record,” CERC added.

Adani Green Energy Share Price History

In a year shares of Adani Green Energy Ltd have declined over 45 per cent on the NSE. On a year-to-date basis, the renewable energy company’s share price has slipped over 7 per cent. In six months the stock has declined nearly 43 per cent. In a month the company’s shares have surged nearly 4 per cent and in five days the stock has climbed nearly 8 per cent.

At the time of writing, shares of Adani Green Energy Ltd pared the gains as it traded at Rs 962.35 apiece, up by 1.6 per cent on the NSE.