Good morning [%first_name |Dear Reader%],

After the capital markets shakedown of last week, the Adani Group has swung into crisis-management mode, many of the group’s companies continue to shed market capitalisation (though some of them saw something of a bump on Tuesday), and the full impact of this meltdown is still unfolding. That’s where we are. 

In the context of this newsletter, though, what is clear is this: an Adani Green Energy slowdown, due to a potential funding squeeze, will not dramatically affect or derail India’s net zero goals or renewable energy targets as some are making it out to be.

Look at the big picture. 

The Adani group’s renewable energy unit has an operational capacity of 7.3 Giga Watt (GW), a growth of ~35% in the first nine months of the financial year ending March 2023. That’s just 4.4% of India’s total installed renewable energy capacity of 166GW today. For a country that needs to add an additional ~345 GW of primary renewable energy generation capacity in the next seven years, one corporate group floundering for a while doesn’t mean the end of India’s green transition project.