Adani Green Energy (AGEL) is de-risking its growth strategy by moving away from merchant renewable power sales and locking about 4 GW of generation into long-term supply agreements with group company Adani Energy Solutions Ltd (AESL).“Our strategy is to de-risk ourselves. We concentrate more on operational excellence, project execution and deploying capital efficiently rather than taking market risk,” Ashish Khanna, Chief Executive Officer of Adani Green said recently.The move marks a strategic shift for India’s largest renewable energy developer, which will increasingly focus on building and operating renewable assets while leaving power marketing and customer aggregation to AESL.The company indicated that the approach would also extend to future renewable and battery storage projects that were earlier earmarked for merchant or commercial and industrial (C&I) sales.Adani Energy Solutions Ltd too during its recent earnings call said it has tied up around 5 GW of renewable supply capacity, of which about 4 GW has been contracted from AGEL and the balance from third-party renewable generators.The strategy marks a departure from Adani Green’s earlier model of commissioning renewable projects ahead of securing long-term power purchase agreements (PPAs) and monetising electricity through merchant markets while taking advantage of favourable market conditions.Instead, the company will increasingly earn predictable returns through long-term supply contracts, with AESL assuming the responsibility of marketing power to end-users.Executives said the agreements have been structured on an arm’s-length, market-linked basis and broadly mirror conventional long-term renewable PPAs.Solar and wind contracts are typically for 25 years, while battery energy storage system (BESS) agreements run for 15 years, providing long-term revenue visibility. Khanna said the strategy would continue beyond the initial 4 GW portfolio.“All that was supposedly merchant for us, to de-risk it, we have tied up and are going to tie up with AESL,” he said, adding that the company would continue to monetise electricity in merchant markets only for projects commissioned before their contracted PPAs become operational.For Adani Energy Solutions Ltd, the arrangement forms the foundation of its rapidly expanding energy solutions platform, under which it aggregates renewable generation, battery storage and power procurement to supply customised energy solutions to utilities, industries and data centres.“Our objective would be that most of the tied-up capacity on the purchase side has also tied up on our sales side. We would not want to have that kind of variability on our P&L,” said AESL Chief Executive Officer (CEO) Kandarp Patel while adding that the company intends to convert most of its business into annuity-like revenues by matching long-term purchase agreements with long-term customer contracts.The company currently has around 350 MW of contracted C&I customers but said negotiations are at an advanced stage to secure long-term offtake agreements covering most of the renewable capacity already tied up.It expects demand to come increasingly from utilities, data centres and industrial consumers seeking round-the-clock renewable power backed by storage. AESL said the energy solutions business has already transitioned into a full-scale vertical.During the June quarter, it handled over 13 billion units of electricity, including 3,325 million units supplied under long-term contracts, with the contracted portfolio contributing around ₹570 crore in EBITA.Executives said only a small proportion of capacity would remain exposed to short-term electricity markets to capture pricing opportunities, while the bulk would be backed by long-term agreements.To support the strategy, AESL has also contracted 3.5 GWh of battery storage capacity on a long-term basis, enabling it to combine solar, wind and storage into firm renewable power solutions.The company estimates the addressable market for its energy solutions platform at 7.5 GW by 2031, driven by growing demand from data centres, utilities and commercial and industrial consumers. AGEL is simultaneously accelerating investments in storage.During the quarter, it commissioned 1.9 GWh of battery energy storage capacity at Khavda, taking its operational battery portfolio to 3.5 GWh. The company reiterated its target of crossing 10 GWh by the end of FY27 and 50 GWh by 2030.Published on August 1, 2026