Adani Green Energy’s first-half EBITDA for FY27 fell short by ₹724 crore due to transmission bottlenecks at its Khavda renewable energy park. Power evacuation delays have forced the company to increase battery storage to manage excess generation. Investors may monitor the project completion timeline, as further grid infrastructure delays could continue to impact operational income.
Adani Green Energy Ltd has reported a significant financial impact in its first-half results for fiscal year 2027, attributing a ₹724 crore shortfall in potential EBITDA to transmission bottlenecks at its massive Khavda renewable energy park in Gujarat. The company stated that if it had been able to evacuate all the power generated at the site, its H1 EBITDA would have reached nearly ₹9,000 crore, rather than the reported ₹8,276 crore. The core issue lies in the ability to move the generated solar and wind energy into the national grid, known as power evacuation.
Transmission Delays and Project Timeline
The bottleneck is caused by the delay in the Phase III, Part A transmission corridor, a project being developed by Adani Energy Solutions Ltd through its subsidiary, Halvad Transmission Ltd. This infrastructure is vital for connecting 7 gigawatts of renewable capacity to the interstate power grid. Originally scheduled for completion in December 2025, the project has faced challenges related to construction timelines and land access rights, pushing the expected operational date to June 2026. Without this high-voltage connection, the company has been unable to fully transmit the power generated at the Khavda site, leading to the financial loss.
Strategic Pivot to Battery Storage
To manage this situation and avoid wasting power that cannot be sent to the grid, Adani Green Energy is increasing its focus on battery energy storage systems. By the end of September 2026, the company had installed 6,632 megawatt-hours of battery capacity and aims to cross 10 gigawatt-hours by the end of the current fiscal year. While battery storage allows the company to store excess energy and release it during peak demand hours, management has clarified that this is a mitigation strategy and not a complete substitute for the essential high-voltage transmission lines needed to evacuate large-scale generation.
Growth and Future Outlook
Despite these hurdles, the company continues to expand its footprint. As of September 30, 2026, Adani Green Energy reported an operational capacity of 20.76 gigawatts, which is a 24 percent increase compared to the previous year. The company maintains its long-term goal of reaching 50 gigawatts of capacity by 2030. However, near-term expansion plans, including a target to add 4.5 to 5 gigawatts of capacity, remain closely tied to the progress of the transmission infrastructure.
For investors, the key monitorable will be the progress of the Phase III transmission corridor. Any further delays in this infrastructure could lead to continued reliance on battery storage, which is a capital-intensive solution, or force the company to manage power output levels until the grid connectivity is established. Observing the commissioning date in June 2026 and monitoring the company’s capital spending on storage solutions against its profitability will be important for assessing future operational efficiency.