Hybrid projects that mix solar, wind, and storage to deliver round-the-clock clean energy are the talk of the town. And one company is quietly leading the next big green energy transition. Here’s more.
Adani Green Energy Ltd (AGE) is trying something most energy companies in India haven’t mastered yet: it’s combining solar, wind, and batteries in a way that makes clean energy accessible even when the sun isn’t shining or the wind isn’t blowing.
It’s called hybrid energy, and it could change how we use power in our homes, factories, electric vehicles, and more.
At first glance, the idea of mixing diverse sources of clean power may seem apparent. But what makes it a much-wanted transformation is its capacity to solve one of the main issues in renewable energy: intermittence.
Solar doesn’t work at night. Wind can be unreliable. And both kinds of energy can strain the grid when they generate more power than the system can absorb.
Batteries can help, but they’re expensive. That’s why very few businesses have identified how to fit in all three in a way that’s scalable, cost-effective, and well-organized.
AGE is not just experimenting. It’s building what could be the biggest hybrid renewable energy park in the world, in Khavda, Gujarat.
Designed to produce 8,000 megawatts (MW) of solar and wind energy, backed by large-scale storage. The project is part of a larger pipeline that already puts AGE at the top of India’s renewable leaderboard with more than 20 GW in current and upcoming capacity.
But why go hybrid now?
Because India’s energy needs are changing. Customers, businesses, and administrations not only want clean power, but they also want it on demand.
Coal has for ages been the backbone of 24/7 electricity in India, but it comes with extreme emissions and mounting costs of coal washing (beneficiation), higher maintenance and operating costs for old power plants.
That’s where hybrid clean energy comes in. It offers the consistency of coal without the smog, and it’s gradually getting cheaper to build and operate.
Adani Green’s strategy is not about adding capacity only. It’s about providing distributable green energy that can be delivered to the grid when it’s needed. That’s a plus in a market where peak-hour tariffs are rising and grid operators are finding it hard to balance supply.
In short, AGE is stating that hybrid is the future of power in India, and it’s building the infrastructure today that others may have to struggle to catch up with tomorrow.
From Blueprint to Gigawatts: Inside the Khavda Project
AGE has taken the hybrid model and is going at it at full speed. The company’s most ambitious project is the 8,000 MW hybrid energy park in Khavda, Gujarat.
Imagine it is the size of 3,000 football fields filled with solar panels and windmills, all connected by smart control systems and batteries.
According to Blackridge Research & Consulting, AGE will achieve a capacity of 500 GW of renewable energy by 2030, with this project being a significant part of this plan.
AGE’s Operational Capacity (Q1 FY26)
In the Q1 FY26 quarter, AGE sold 10,479 mn units, which is 42% more energy than in the same period previous year, driven by hybrid systems. These systems had a higher Capacity Utilisation Factor (CUF) of 43.9%. It is a measure of how efficiently a power plant is working.
“Hybrid projects are helping us deliver more reliable and consistent energy,” AGE said in its Q1 update.
It means Adani Green Energy is already bearing the fruits of its shift to hybrid: more energy, improved performance, and more satisfied customers.
Smarter Economics: The Hybrid Cost Advantage
Hybrid systems are clever not just in design but in cost, too. When you build one project that includes solar and wind on the same land and connects to the same wires, you save money.
You need less land, build fewer transmission lines, and hire the same staff for maintenance, which brings down the total cost of clean energy.
According to global estimates from the International Renewable Energy Agency (IRENA), hybrid power systems can be 10-15% cheaper than solar or wind projects built separately.
But there’s one big issue: battery storage is still expensive. In India, it can cost around ₹10.18 to ₹12.30 per kWh as per PIB based on its SECI auction for 500 MW/1000 MWh BESS. And most of those batteries are imported. Adani Green Energy’s solution? Go big and early.
India’s eco-energy goals require large-scale utility storage to integrate renewables into the grid and offer a 24/7 supply.
Based on this aim, AGE has diversified its portfolio to include energy storage solutions in addition to its current solar, wind, and hybrid projects.
It won a 1250 MW of energy capacity storage from the Uttar Pradesh Power Corporation (UPPCL). The project is called Panaura Pumped Hydro Storage Projects (PSP), for 40 years.
It plans to add 5GW of hydro PSP capacity by 2030 and has started building its hydro pumped storage projects, including 500 MW on the Chitravathi River, 1800 MW at Gandikota, in Andhra Pradesh, and 1500 MW at Tarali in Maharashtra.
The company is also looking at using this hybrid energy to generate green hydrogen, an eco-fuel that’s growing in demand globally.
From Grid Parity to Time-of-Day Tariffs
Adani Green’s hybrid push also makes sense because of the changing rules and prices in India’s energy system.
Clean power is cheaper than coal energy. Solar and wind power costs have declined, falling below ₹2.5 per unit, while coal has surged to ₹4 per unit or more, as mentioned by the Ministry of Power (MOP)’s guidance/actual tender in the Economic Survey 2024.
Moreover, time-of-day pricing has helped. It means power is charged differently for peak hours (like evenings) and off-peak hours. Hybrid systems can deliver when power is most expensive, helping companies like AGE make better profits.
Energy projects that can prove they save more emissions earn credits that can be sold globally. Hybrid systems, being more reliable, are better for these markets.
Companies can now buy hybrid power openly, avoiding state-run electricity boards. This boosts demand and improves a hybrid project’s viability.
In short, the government has given a regulatory green light, and Adani Green Energy is hitting the accelerator.
Strong Basics, Improving Returns
Let’s look at the financial side. AGE has increased its energy sales and profits in the first quarter despite building massive projects.
The return on equity was 16% while the profit grew at a CAGR of 56% over the last three years. Also, Adani Green has long-term contracts to guarantee income and support its massive debt
The brokerage firm Jefferies said AGE is completing its projects, thanks to better productivity, smarter preparations, and its hybrid energy in its July 2025 report.
The Race for Renewables: How Rivals are Responding
Adani Green isn’t the only business identifying the value of hybrid power. Several of India’s leading renewable energy companies, public and private, are working on their hybrid strategies. But every approach is different, and none is at Adani Green’s scale.
1. NTPC Renewable Energy (NTPC RE)
NTPC RE, the green energy arm of India’s largest power producer, NTPC Ltd, has slowly entered the hybrid space with its solar-wind projects in Gujarat, which is a part of its 450 MW hybrid project. This project will offer peak-hour generation under a pilot PPA with a northern state distribution company.
2. ReNew Power
ReNew has been among the early adopters of hybrid projects in India. ReNew Energy Global is investing ~ ₹22,000 croresto set up a 2.8 GW wind and solar energy project and a 2 GWh battery storage in Anantapur, Andhra Pradesh.
3. Tata Power Renewable Energy
Tata Power RE has worked on distributed renewables and rooftop solar it is slowly entering the hybrid game too. It secured a ~400 MW hybrid project from MSEDCL in Maharashtra. This project will not only increase its renewable energy capacity to 10.5 GW and reduce carbon emissions by ~895 mn kg of CO.
While major players are entering hybrid territory, AGE is moving faster. It had invested more capital and integrated its projects with future use cases like hydrogen and export credit markets.
Doing so has given it the first-mover advantage, but the competition will intensify in the next few years.
Beyond Borders: Adani’s Plan for Clean Energy Exports
An interesting and perhaps underappreciated aspect of AGE’s hybrid strategy is the possibility of generating foreign exchange revenue, not just domestic power. Two options that are available are carbon credits and the export of green hydrogen.
1. Carbon Credit Opportunities
The demand for high-integrity carbon offsets is rising globally as countries and companies push toward net-zero goals. India, thanks to its renewable push, is in the right place to offer these credits, especially from projects that have low emissions inconsistency and are steady, scalable.
Hybrid systems, because of their stability and predictable clean power, are the best contenders for high-grade Voluntary Carbon Market (VCM) credits, especially under standards like Verra and Gold Standard.
AGE’s 8 GW hybrid park in Khavda, fully operational, could generate millions of tonnes of CO₂ savings annually. It could mean substantial dollar-denominated revenue streams from developed markets like the EU, Japan, and others seeking offsets.
AGE could even structure these credits into long-term forward contracts or securitised revenue bonds, offering upfront capital recovery options.
2. Green Hydrogen Synergies
AGE’s hybrid assets are also being positioned as feedstock energy for green hydrogen production via its affiliate Adani New Industries Ltd (ANIL).
The logic here is simple: hydrogen electrolysers require immense amounts of electricity, and to qualify as “green hydrogen” under EU or Japanese regulations, that electricity must come from additional renewable capacity, not power that’s already being supplied to the grid.
Hybrid energy, with its more stable and dispatchable nature, is ideal for operating hydrogen plants that must run with minimal downtime.
ANIL has announced plans to build 1 million metric tonnes of green hydrogen production capacity by 2030, and AGE’s hybrid parks will supply most of this energy.
Export markets for green hydrogen and ammonia, like Germany, South Korea, and Japan, have already signed strategic agreements with the Indian government bodies.
AGE is building not just clean power plants, but an export infrastructure for India’s clean molecule economy.
Balancing Ambition and Risk: What Investors Need to Watch
AGE’s hybrid energy goals are ambitious. However, risks often accompany progress.
1. Battery Tech and Ambiguous Costs
Adani Green Energy may be investing heavily in battery storage, but the financial side of this segment is still unsteady in India. Battery prices, though falling globally, remain volatile due to lithium and cobalt supply constraints, India’s limited cell manufacturing base, and the lack of uniform standards for battery integration with renewables
AGE’s success will depend on the speed at which India’s battery supply chain matures, or on its ability to win global supply deals at favourable terms.
2. Execution Risks
AGE is known for its quick timelines and large-scale rollouts. But large hybrid parks often require massive investment in land purchases, on-time permissions, and public acceptance.
Any delays here could push revenue timelines and eat into margins. AGE, so far, has kept a solid track record. But its dependence on government approvals is a risk in states with changing political climates.
3. High Debt
Adani Green had a consolidated net debt of ₹44,372 crore in Q1 FY26, making it one of the more leveraged companies in the green sector.
While most of this debt is long-term and backed by 25-year power purchase agreements (PPAs), rising interest rates or interruptions in asset monetisation (e.g., InVITs, or equity sales) could stress its cash flows.
Investors must check AGE’s debt-to-equity ratio. It can help investors understand the relation between the capital invested and its debt now that it is entering the green hydrogen and power storage sectors.
4. Regulations and Rate Risks
Positive government policies like hybrid tender support, transmission charge waivers, and well-defined carbon market rules can help AGE succeed.
However, a sudden shift in subsidies or delays in tariff orders from state regulators could affect these projects. For example, the time-of-day tariffs vital to hybrid revenue are still being tested and are not applied uniformly.
5. Reputation
While AGE operates separately, it is part of the Adani Group, which has been in the news in global media and capital markets. Investors who look for green energy may also take into account the group governance issues when they invest.
A New Hybrid Era
India’s energy needs are growing, and the old model of depending on coal or just one type of renewable energy won’t cut it anymore.
Hybrid power, solar + wind + storage, could be the answer to clean, reliable, and affordable energy anytime.
And Adani Green isn’t just reacting to this shift. It’s leading it.
By merging shrewd planning, regulatory timing, and large-scale ambition, AGE could be shaping India’s next big leap in clean energy. And possibly exporting it to the world.
Valuations
AGE trades at a Price to earnings (P/E) multiple of 81x. In comparison, the median for the related companies is 40x. It’s easy to deduce that AGE trades at a huge premium to its peers. Perhaps, investors have already factored in that AGE’s plans to be a dominant player in the hybrid energy market will pan out as planned. ICICI Securities in the 30 July 2025 research note rated the AGE stock a Buy, with a target price of 1,230, which is an upside of 34% from current levels.
Only time will tell what the future holds for AGE.
Disclaimer
Note: We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Archana Chettiar is a writer with over a decade of experience in storytelling, and, in particular, investor education. In a previous assignment, at Equentis Wealth Advisory, she led innovation and communication initiatives. Here she focused her writing on stocks and other investment avenues that could empower her readers to make potentially better investment decisions.
Disclosure: The writer and her dependents do not hold the stocks discussed in this article.