Indian private utility Adani Energy Solutions (AESL) has attained financial closure for its $1bn high voltage direct current (HVDC) transmission link project in Mumbai, Maharashtra, India.

The 80km multi-faceted project is designed to supply uninterrupted renewable energy between Kudus and Aarey in Mumbai to meet the rising electricity demand.

According to Adani Energy Solutions, the $700m financial closure was achieved with nine international banks. The credit facility is part of the revolving project finance facility that was arranged in late 2021 for the company’s under-construction transmission assets portfolio.

The banking consortium for the platform infrastructure financing framework is made up of MUFG Bank, Siemens Bank, DBS Bank, Intesa Sanpaolo, Standard Chartered Bank, Mizuho Bank, Société Générale, Sumitomo Mitsui Banking, and Hong Kong Mortgage.

Adani Energy Solutions managing director Anil Sardana said: “This link is the need of the hour for the city and will support its growth aspirations. It showcases our commitment to offering Mumbai a brighter and greener future.

“The project will help accelerate the city’s decarbonisation and its net zero journey. We would like to express our sincere appreciation to our banking partners for their continued support in completing the transaction smoothly and for their endured faith and confidence in AESL.”

Adani Energy Solutions said that the HVDC transmission project aligns with the firm’s mission to boost the share of clean energy in the overall mix to 60% by 2027.

The proposed HVDC transmission link is expected to improve grid stability by offering an interface with the state and national grids.

Besides, the transmission project will bulk inject an additional 1GW of clean energy into the city, said the transmission and distribution business arm of the Adani Portfolio.

Furthermore, Adani Energy Solutions expects the HVDC project to provide a technological upgradation to the city along with managing all the complexities in developing such a large-scale project in Mumbai.

Adani Energy Solutions said that it aims to commence the construction work for the HVDC transmission link project in October 2023.

Last year, Hitachi Energy was awarded an order by the Indian utility to provide the HVDC transmission system for the project.