Transmission Delays Cost Adani Green ₹724 Crore in H1 FY27 EBITDA

Adani Green Energy Ltd (AGEL) estimated that power curtailment resulting from transmission constraints reduced its potential earnings before interest, tax, depreciation, and amortisation (EBITDA) by about ₹724 crore in the first half of FY27. The shortfall stemmed from delays in a key transmission corridor at Gujarat’s Khavda renewable energy park, which restricted the company's ability to evacuate power.

Speaking during the company’s earnings call, Managing Director and Chief Executive Officer Ashish Khanna stated that total EBITDA during H1 FY27 stood at ₹8,276 crore. He noted that without curtailment, the figure would have been close to ₹9,000 crore. The company expects the operational impact to ease in the second half of the financial year as it fast-tracks battery energy storage projects.

The bottleneck centers on the Phase III, Part A transmission system being developed by Adani Energy Solutions Ltd through Halvad Transmission Ltd. The system is designed to evacuate an additional 7 gigawatts (GW) of renewable power from Khavda into the national grid and was initially scheduled for commissioning in December 2025. However, a Western Region Power Committee report from March 2026 revised the expected completion date to June 2026 due to construction delays and right-of-way (RoW) issues, which occur when developers face difficulties securing permissions to install towers and string power lines across land.

Khanna explained that the 7 GW corridor will provide the required General Network Access (GNA) capacity, which is the authorised access that enables a power generator to inject electricity into the interstate transmission network. He noted that obtaining full GNA capacity will remove existing curtailment and allow the company to execute further operations.

To counter the transmission delays and reduce the amount of unused renewable electricity, AGEL is stepping up its battery energy storage deployment. By the end of September, the company had installed 6,632 megawatt-hours (MWh) of battery storage capacity, which included 3,081 MWh commissioned during the September quarter. AGEL is targeting 10 gigawatt-hours (GWh) of installed capacity by the end of FY27 and expects to exceed that target.

While battery storage helps absorb surplus electricity when generation is high and releases it later to improve power utilization, Khanna acknowledged that storage cannot fully replace transmission capacity when the grid is unable to carry power out of a project location. Nevertheless, AGEL expects the faster rollout of storage to reduce curtailment impacts in H2 FY27.

The transmission delays have also affected the pace of new project commissioning. AGEL initially targeted 4.5 to 5 GW of capacity additions by the end of the calendar year, but the timeline is now tied to the availability of the Phase III transmission corridor. The company was operational with 20.76 GW of renewable energy capacity as of September 30, 2026, marking a 24 percent increase year-on-year, with a longer-term target of reaching 50 GW by 2030.

"This situation highlights a critical operational challenge in the renewable energy sector, where generation capacity often outpaces transmission infrastructure development. For large-scale energy players, diversification through battery energy storage systems is a necessary interim strategy to safeguard revenues and manage grid constraints. However, resolving right-of-way and execution delays in transmission corridors remains vital for long-term scalability and project realization." — Dr. Shishir Gupta, Founder & CEO, StartupLanes