Adani Green Energy Limited Annual Report 2018-19 Renewables Corporate Review 2 Introducing Adani Green Energy Limited 4 Pan-India Portfolio 5 Marquee Projects 6 AGEL Competitive Advantages 8 Operational Highlights 10 Financial Highlights 12 Chairman’s Review 14 CEO’s Message 16 Megatrends 18 Strategic Priorities 20 Robust Project Execution 22 Growing with Efficient Operations 24 Harnessing Technology and Digitalisation for Operational Excellence 26 People 28 Environment 30 Corporate Social Responsibility 36 Corporate Information Statutory Reports 38 Directors’ Report 58 Management Discussion and Analysis 66 Corporate Governance Report 90 Business Responsibility Report Financial Statements 100 Standalone 159 Consolidated Find more online www.adanigreenenergy.com 226 Notice Creating value with a green future As the global energy industry increasingly shifts towards adopting renewable energy, India is also gearing up to add 500 GW of renewable energy to its electricity grid by 2030, in a bid to reduce the impact of Greenhouse Gases (GHGs) in its cities. Supporting this mission is Adani Green Energy Limited (AGEL), which has been making major strides in delivering clean energy while maintaining reliability and affordability. We are committed to this objective of the nation FY19 highlights and we constantly endeavour to add capacities to support the country’s gradual progression towards renewable energy. Our consistent efforts have made us one of the largest renewable crore crore energy players in India. D 2,058 D 1,710 Total Revenue (Consolidated) EBITDA Over the years, we have invested in resources and business insights to build a unique 39% 105% integrated model across the value chain. Safety and sustainability form the backbone of all our activities. We have taken on challenges of the business and have transformed them into opportunities for growth and development. 90% 3.6 million tonnes EBITDA Margin Co2 equivalent displaced Today, with presence across 11 states in India, a healthy mix of wind and solar energy and EBITDA margin % represents EBITDA earned from Power Sales long-term offtake agreements, we have set and excludes other items the pace to achieve our longstanding goal of being at the forefront of investing in cleaner, greener technologies. Y-O-Y Growth Our promise is to continue creating sustainable value for all our stakeholders, while promoting a greener environment and creating a better India for our communities. Adani Green Energy Limited Introducing Adani Green Energy Limited Building a better future with cleaner energy Adani Green Energy Limited (AGEL) is one of the largest renewable companies in India, with a current project portfolio of 4,560 MW. AGEL is part of the Adani Group’s promise to provide a better, cleaner and greener future for India. Driven by the Group’s philosophy of ‘Growth with Goodness’, the Company develops, builds, owns, operates and maintains utility-scale grid-connected solar and wind farm projects. The electricity generated is supplied to central and state government entities and government-backed corporations. On the back of long-term Power Purchase Agreements (PPAs) of 25 years with central and state government entities, AGEL has leveraged its capabilities and expanded its presence across 11 Indian states. The Company deploys the latest technologies in its projects to power India with clean and sustainable energy. With a portfolio of 46 operational projects and 18 projects under construction, AGEL is driving India on its renewable energy journey. Group overview AGEL is promoted by Adani Group, one of the Over the years, the Group has been guided by largest business conglomerates with interests a set of core values that define the way we across resources (coal mining and trading), do business. These values represent the core logistics (ports, shipping and rail), energy priorities in organisation’s culture and inspire (renewable and thermal power generation, efforts to create a successful organisation. transmission and distribution), agricultural commodities and ancillary industries. Our values Courage Trust Commitment » We shall embrace new ideas » We shall believe in our employees » We shall stand by our and businesses and other stakeholders promises and adhere to high standards of business » Take calculated risks in pursuing » Show faith in the capability new and big business opportunities of our employees » Be Reliable – ‘Do what you say’ and ‘Say what you will do’ » Dare to achieve » Empower our employees to go beyond the call of duty to » Consistently deliver on business » Own up to our decisions deliver results goals and targets » Encourage employees to » Consistently demonstrate high turn disappointments into standards of professionalism learning opportunities » Listen to and include the perspectives of our vendors, investors and other stakeholders 2 Annual Report 2018-19 Corporate OverviewCorporate Our business strengths » Largest private sector solar power developer in India » Operations and Maintenance (O&M) expertise, delivering committed plant performance at » Part of a vertically integrated energy and industry-leading benchmarks infrastructure conglomerate » Market-leading financing terms » Predictable and high-quality revenue stream on the back of long-term offtake agreements » Skilled and experienced senior management Statutory Reports » Long life assets » Clear visibility of sites rich in solar and wind resource capable of accommodating ~15 GW future projects » Reputation and track record of execution excellence – Design & Engineering, Project Management, Land Acquisition and Strategic Sourcing Our culture Key facts Financial Statements Passion Dedication Performing with enthusiasm Working with commitment in 2,020 MW* 64 and energy the pursuit of our aims Operational capacity Projects Results Entrepreneurship Presence in Consistently achieving goals Seizing new opportunities 100% with initiative and ownership 25-year PPAs 11 States Integration Working across functions and billion businesses to create synergies ~$2 Asset base *Includes 50 MW Jhansi Project commissioned in May 2019 Credit Rating US$ Bond Rating (AGEL’s Restricted Group) BB+ (by FITCH and S&P) Entity Ownership Domestic Rating Adani Green Energy Limited (AGEL) IndRa A / Stable / IndRa A1 Adani Green Energy Tamilnadu Limited 100% - AGEL IndRa A+(SO)/Stable (AGETNL) - 216 MW Ramnad Solar Power Limited (RSPL - 72 MW) 100% - AGETNL IndRa A+(SO)/Stable Ramnad Renewable Energy Ltd. (RREL-72 MW) 100% - AGETNL IndRa A+(SO)/Stable Kamuthi Solar Power Limited (RSPL - -72 MW) 100% - AGETNL IndRa A+(SO)/Stable Kamuthi Renewable Energy Limited (RREL - 72 MW) 100% - AGETNL IndRa A+(SO)/Stable Adani Wind Energy (Gujarat) Ltd - (Rojmal + Sadla) 100% - AGEL IndRa BBB/Negative PSEPL + PDPL + AGEUPL - RG1 Structure Rating 100% - AGEL CRISIL AA(SO)/Stable | IndRa AA(SO)/Stable 3 Adani Green Energy Limited Pan-India Portfolio Powering India with green energy 100 640 20 175 100 1,725 60 12 100 20 100 50 Wind Operational 810 Solar Under Implementation 648 Wind, Solar, Hybrid Our projects Particulars Solar Wind Hybrid Total Operational 1,948* 72 - 2,020 Under Implementation 675 1,475 390 2,540 Total 2,623 1,547 390 4,560 * Includes 50 MW Jhansi Project commissioned in May 2019 Map not to scale 4 Annual Report 2018-19 Marquee Projects OverviewCorporate Lighting up the nation with clean energy Statutory Reports Kamuthi Solar Project Punjab 100 MW Solar Project » AGEL developed a 648 MWAC solar power » Commissioned India’s largest single-axis plant, the then world’s largest at a single tracker-based solar PV project in Bathinda Punjab location, spread over 2,340 acres situated in » Spread over 641 acres of land, the plant features Financial Statements Kamuthi, Tamil Nadu power evacuation through 132 kV double-circuit » It was a mammoth execution undertaken in less transmission lines connected to the State than nine months, of which two months were Transmission Utility (STU) affected with the worst floods in Tamil Nadu’s » The plant uses technologically superior Tier-1 recent history. The next largest solar project in solar PV modules with polycrystalline silicon cells the world is in California (550 MW ) that took AC and employs the Horizontal Single Axis Tracker over 3.25 years to execute (HSAT) technology to capture maximum energy » Due to the exceptional execution, the project from the sun and power thousands of homes in was featured on National Geographic’s the state of Punjab Megastructures episode as ‘India’s Solar Power House’ Project highlights Operational highlights for FY19 2,340 99.8% Acres land Plant availability 3,80,000 99.9% Foundations Grid availability 2.5 million 100.51% Solar modules Performance ratio (PR) achievement 8,500 78.85% Project personnel Target PR 550 Inverters 6,000 Containers from nine countries 5 AGEL Competitive Advantages Leader in new grid friendly renewable energy solution like hybrid project 4 Stable long-term cash flows with 25-year PPAs (60% with SECI / NTPC) 3 2 Clear visibility on 15 GW development sites 1 Best positioned to tap Indian large renewable energy opportunity Technology Cloud based Continuous design leader RONC improvement for plants Project execution and O&M 5 capability 6 7 Demonstrated financing capability 80% operational portfolio refinanced on competitive terms 8 Strong strategic relationship with supplier to provide user specific equipment at competitive costs Adani Green Energy Limited Operational Highlights Setting us apart » Average availability of solar plants of