AGEL RG1 consists of 930MW polycrystalline solar projects, a proven technology with a long operating history. Fitch opined that the operation of this kind of solar projects as straightforward. “Solar modules are provided by various internationally well-known suppliers. O&M work is carried out by an affiliate company, Adani Infrastructure Management Services Limited, under seven-year fixed-price contracts with 2% annual price escalation. However, the O&M contracts have been revised a few times in the past with lower fixed prices than the original contracts,” it said.

As per the rating agency, O&M cost per MW is comparable to the O&M cost in its rated Indian renewable universe. The operation risk assessment is constrained to 'Midrange' because the operating cost forecast is not validated by an independent technical advisor, it added.

The report also highlighted the group is re-evaluating its investment plans, especially in non-infrastructure businesses. The Adani family recently sold $1.9 billion of shares in various group entities to a U.S.-based fund. Two of the boards at Adani group companies - Adani Transmission and Adani Enterprise - approved plans to raise a total of about $2.5 billion from the stock market. The additional funding will support financial flexibility across Adani group entities, mitigating the risks, it said.

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AGEL RG1

Adani Green Energy’s USD notes get 'BB+' rating from Fitch; stock rises