Category: Finance

As nations in sub-Saharan Africa advance their industrialization and economic growth agendas, renewable energy infrastructure is increasingly at the forefront of discussion. The cost of solar-battery electricity systems has fallen significantly in the past decade, making renewables the cheapest form of electricity generation in many parts of the globe. Recent African Development Bank projects have shown it to often be the least-cost resource in sub-Saharan Africa as well.

In 2008, as big banks began failing across Wall Street and the housing and stock markets crashed, the nation saw how crucial financial regulation is for economic stability — and how quickly the consequences can cascade through the economy when regulators are asleep at the wheel.

Until now, Adani Green Energy Limited (AGEL) had been focusing on renewable energy capacity expansion through greenfield investments. With this strategy, its renewable energy portfolio grew substantially, from only 0.3 GW in 2015-16 to 14.8 GW in 2020-21. However, recently, it signalled its strong interest in augmenting its renewable energy exposure through acquisitions as well. In May 2021, AGEL acquired SB Energy India, which has 4.95 GW of renewable assets, through an equity purchase worth $625 million (about Rs 46 billion).

Regulated electric utility companies in the United States hold nearly $160 billion in fossil generation assets on their books—investments approved by their regulators that will need to be repaid by their customers. Utilities will likely need to accelerate the retirement of most of these assets or transition them to low-carbon operation by 2030 to meet the NDC emissions target.