Adani Green Management Discussions

Economic Overview Global Economy

The global economy displayed remarkable resilience in 2023, experiencing a consistent but slow recovery with regional disparities. Global growth held steady at a modest growth rate of 3.2% in 2023. However, underlying risks and vulnerabilities persist due to escalating geopolitical conflicts, sluggish recovery in China, volatility in energy and food markets, prolonged higher interest rates and inflation. Furthermore, the Red Sea crisis has caused the biggest diversion of global trade in decades, leading to delays and heightened expenses for shipping lines

that are avoiding a waterway that normally handles 12% of the worlds maritime trade. As the crisis continues to unfold, its far-reaching impact on global supply chains has become increasingly evident. Despite these challenges, indications of stable growth, robust performance of the United States and several large emerging market and developing economies, along with inflation returning to target levels in advanced economies, indicate a diminished risk of a severe economic downturn. Global inflation continues to decline at a faster pace from 8.7% in 2022 to 6.8% in 2023. While headline inflation has sustained a decline from its unprecedented peaks, core inflation has proven to be sticky and is expected to decline gradually.

Region-wise Growth (%)

Region Global Economy	2023 (E) 3.2	2024 (P) 3.2	2025 (P) 3.2
Advanced Economies (AEs)	1.6	1.7	1.8
Emerging Markets and Developing Economies (EMDEs)	4.3	4.2	4.2

(E- Estimates, P- Projections)

Source: International Monetary Fund

Outlook

The global economy is expected to sustain its resilience in 2024, with the IMF projecting a growth rate of 3.2% for both 2024 and 2025. The global economic outlook in 2024 will be impacted by elevated interest rates as the war against inflation is not over and continues to be threatened by multiple factors including persistent core inflation, withdrawal of fiscal support amid high debt weighing on economic activity, low underlying productivity growth, a tight job market and economic uncertainties. Global headline inflation is expected to decrease to 5.9% in 2024 and to 4.5% in 2025. Furthermore, the prolonged Russia-Ukraine conflict has the potential to further dampen the overall economic outlook of the European Union. Additionally, an escalation in the Middle East crisis could impact oil and commodity prices and the global supply chain. Regional conflicts and geopolitical unrest could elevate energy prices, reduce energy supply, or raise the risks of supply disruptions, contributing to additional geo-economic fragmentation and posing downside risks for the global economy.

However, positive factors, such as stronger-than- expected economic performance of the US and several large emerging market and developing economies, economic stimulus in China, the resilience of Europe amid the ongoing war, easing of supply chain bottlenecks and faster disinflation will bolster the outlook of the global economy.

(Source: IMF Economic Outlook, April 2024)

Indian Economy

Amid a challenging global economic landscape and deteriorating geopolitical conditions, India has retained its position as the fifth-largest economy in the world and is poised to persist as the worlds fastest-growing major economy. Its GDP growth remained buoyant at 7.6% in FY 2023-24 as against 7% in FY 2022-23, supported by robust domestic demand, moderate inflation, a stable interest rate environment, and strong foreign exchange reserves.

Growth of the Indian Economy Real GDP growth

Amid a challenging global economic landscape and deteriorating geopolitical conditions, India has retained its position as the fifth-largest economy in the world and is poised to persist as the worlds fastest-growing major economy.

As per the Second Advance Estimates of National Income, 2023-24, a double-digit growth rate of 10.7% in the Construction sector and an 8.5% growth rate in the Manufacturing sector have contributed to the GDP growth in FY 2023-24. Moreover, Indias IIP growth during April-February FY 2023-24 stood at 5.9%, up from 5.6% in the corresponding period in the previous year. Manufacturing sector output increased by 5.4% Y-o-Y, while the Electricity sector grew by 6.9% during April- February FY 2023-24.

The growth in gross value added (GVA) at Basic (2011-12) Prices is pegged at 6.9% in FY 2023-24 as against 6.7% in FY 2022-23. The Real Gross Domestic Product (GDP) or GDP at Constant (2011-12) Prices in FY 2023-24 is estimated to reach 172.90 lakh crore, compared to the GDP of 160.71 lakh crore in FY 2022-23. Furthermore, Indias per capita income is estimated to reach 2.14 lakh in FY 2023-24, achieving remarkable growth of 8.0%. Rising levels of disposable income have led to an upswing in household consumption, thereby stimulating demand across various sectors.

India had successfully harnessed inflation in FY 2023-24 which is still plaguing major advanced economies. Retail inflation is on a downward trajectory and eased to 4.85% in March 2024. However, food price uncertainties continue to weigh on the inflation trajectory. The RBI, in its efforts to control inflation and boost economic growth, decided to keep the policy repo rate unchanged at 6.50% and remain vigilant and prepared to take effective measures to achieve the target of 4% inflation.

The structural interventions implemented by the government will continue to contribute to the growth of Indias economy. The government has also implemented investor-friendly Foreign Direct Investment (FDI) policy, allowing 100% FDI in most sectors through the automatic route, except for specific strategically important sectors.

Make in India has made significant achievements and is now focussing on 27 sectors under Make in India 2.0 to make India a manufacturing hub. India has reported meteoric improvement in Ease of Doing Business and ranked 63^rd among 190 countries. As part of the Reducing Compliance Burden exercise, over 3,600 compliances have been decriminalised and more than 41,000 compliances have been reduced to promote Ease of Doing Business and increase competitiveness.

The International Monetary Fund (IMF) commended Indias economic resilience, robust growth, and notable progress in formalisation and digital infrastructure. Moreover, Indias G20 presidency in 2023 has demonstrated its ability to cater to global needs, offering a platform to address global concerns and deliver an action plan to expedite progress towards the Sustainable Development Goals.

(Source: Ministry of Statistics & Programme Implementation; Ministry of Finance; RBI; Ministry of Commerce & Industry)

Outlook

Indias economic outlook is optimistic due to robust domestic demand and enhanced macroeconomic fundamentals, bolstered by augmented capital expenditure, proactive policy measures by the government, and the demographic dividend. According to the IMF, the Indian economy is expected to advance steadily at 6.8% in 2024 and 6.5% in 2025.

While the global conflict remained geographically distant from India, there are potential risks to Indias economic growth and stability in FY 2024-25. However, Indias advantageous geopolitical position will help it capitalise

Interim Budget FY 2024-25

The Interim Budget 2024-25 lays the foundation for achieving the vision of a developed and self- reliant India by 2047, focussing on demographic, democratic and diversity strengths. It reflects the governments continued focus on inclusive development, economic stability, sector-specific developments, environmental sustainability and strategic global positioning. The budget outlines a multi-pronged economic management strategy, including infrastructure development, digital public infrastructure, taxation reforms and proactive inflation management.

The government has raised the capital expenditure outlay by 11.1% to 11.1 lakh crore for FY 2024-25, which would be 3.4% of the GDP. It has also increased the outlay for the Production Linked Incentive (PLI) scheme by 33.5% to 6,200 crore. Furthermore, the budget places a strong emphasis on sustainable development, aligning with the target of achieving net zero emissions by 2030. The National Green Hydrogen Mission witnessed a significant boost

with an increased allocation of 600 crore, doubling the allocation compared to the previous year. Additionally, a substantial sum of 8,500 crore has been earmarked for the development of solar power grid infrastructure. At the heart of the energy drive in the Interim Budget lies the Pradhan Suryodaya Yojana (PMSY), aimed at installing rooftop solar power systems in one crore households. This initiative will enable these households to obtain up to 300 units of free electricity each month. With these measures, the increased budgetary allocation is poised to foster the development of a robust ecosystem for renewable energy, marking a significant stride towards sustainable and inclusive growth.

Industry Overview

Global Renewable Energy Sector Overview

In 2023, the total global energy demand growth accelerated. Despite this, the increase in CO2 emissions was lower at 410 million tonnes (MT) as compared to a 490 MT increase in 2022 driven by the continued expansion of solar photovoltaics (PV), wind, nuclear power and electric cars. This helped the world avoid greater use of fossil fuels. Without clean energy technologies, the global increase in CO2 emissions over the last five years would have been three times larger.

From 2019 to 2023, the growth in clean energy was twice that of fossil fuels. The extensive deployment of clean energy technologies during this period substantially limited the increase in fossil fuel demand, providing the opportunity to accelerate the transition away from them this decade.

Since 2019, the deployment of wind and solar PV in electricity systems worldwide has helped avoid annual coal consumption equivalent to that of India and Indonesias electricity sectors combined. It also contributed to a reduction in annual natural gas demand by an amount equivalent to Russias pre-war natural

Since 2019, the deployment of wind and solar PV in electricity systems worldwide has helped avoid annual coal consumption equivalent to that of India and Indonesias electricity sectors combined

gas exports to the European Union. Additionally, the increasing electric car adoption, accounting for one-fifth of new car sales globally in 2023, played a significant role in keeping oil demand (in terms of energy content) below the pre-pandemic levels.

In 2023, the annual addition of renewable capacity to energy systems worldwide increased by almost 50%, reaching nearly 510 GW. This is the fastest growth rate in the past two decades with solar PV accounting for nearly three-quarters of additions. This momentum is expected to continue through the decade aligned with the pledge taken by several countries at COP28 of tripling renewable energy capacity to 11,000 GW by 2030.

India Renewable Energy Sector Overview

India holds the third position in the Renewable Energy Country Attractiveness Index released by EY. Thriving renewable energy market conditions, inclusive policy decisions, investment and technology improvements focussing on self-reliant supply chains have pushed Indias clean energy transition to new heights. However, navigating bottlenecks will be crucial to sustaining rapid growth in the sector. The drive to integrate increasing volumes of variable resources can strain the grid infrastructure, necessitating significant investment to upgrade and expand energy transmission infrastructure.

Indias resilience in the face of global challenges has been remarkable. As the country continues to grow, the energy demand will also grow at an accelerated pace. In 2023, Indias power demand peaked at an unprecedented 243 GW. Over the last decade, Indias peak power demand grew by over 5% annually. This is further expected to grow with India projected to experience the largest increase in energy demand growth of any country globally till 2030 driven by endeavours to illuminate every household including in the remotest village. The increasing pace of economic activity and digitalisation are likely to increase power demand from all corners - industrial, commercial and residential.

India has an installed power generation capacity of 442 GW as on March 31, 2024. Out of this, 199 GW is non-fossil fuel capacity, representing 45% of the total capacity. Renewable energy continued to dominate Indias power capacity addition with about 71% share in FY 2023-24. The 500 GW non-fossil fuel capacity target by 2030 has become even more important for the nation in view of the recent developments resulting into renewed impetus on energy security as well as affordable and clean energy. To achieve this, the government has charted a goal of tendering 50 GW of renewable energy bids every year. every year up to FY 2027-28.

The governments sustained emphasis on various policy initiatives continued to drive accelerated renewable capacity addition. The push towards adoption of green energy open access (GEOA), general network access (GNA), revised renewable purchase obligation (RPO) targets for designated customers, transparent competitive bidding process, schemes for developing large renewable parks, must-run status for renewables, Inter State Transmission System (ISTS) charge waiver, sector-specific finance pool through PFC, REC and IREDA has greatly supported the progressive shift towards renewable and green energy. Also, the amended Electricity (Late Payment Surcharge and Related Matters) Rules of 2022 have led to improvement in cash flow situation of the state DISCOMs and led to substantial reduction in receivable overdue for the renewable energy developers. Further, the government is also proposing to shift part of the night power demand load to daytime through differential Time of Day (ToD) tariffs.

Indian Renewable Energy Sector Outlook

Going forward, coordinated policy action alongside wider industry efforts will be crucial to ensure that India reaches its 2030 target. Some of the key focus areas would be strengthening the grid, building a

robust indigenous supply chain ecosystem, coordination between the central and state agencies to deliver on the annual renewable energy tendering targets, and on-the- ground implementation of various policy initiatives.

Key focus areas for driving accelerated tendering and capacity addition in renewable energy segment are as follows:

? Grid strengthening: It is not only important to add new infrastructure but also to ensure the establishment of a stable grid with better integration of power from various sources. With renewable energy capacity addition currently dominating the overall power capacity addition, there will be an urgency to develop reliable utility-scale energy storage solutions swiftly and cost-effectively to replace thermal as the base load.

? Energy storage solutions: Round-the-clock structures have become an increasingly important part of Indias strategy to reach the 500 GW non-fossil fuel target while meeting its energy needs. These structures integrate renewables with storage capabilities to supply power on a 24-hour basis.

A promising option for storage that has emerged for India is the Hydro Pumped Storage Project (PSP), which is a reliable, mature and efficient energy storage technology. Since PSPs can have a project life of 100+ years, they can be a more reliable storage solution compared to other options. Also, it is one of the cleanest ways to store energy.

India has initiated tendering for Battery Energy Storage Systems, although its large-scale adoption may take time until its cost reduces. While Lithium-ion batteries are currently the dominant storage technology for large-scale plants, there are several promising evolving technologies. Addressing challenges of safety, lifespan, discharge time, battery size and finally commercial viability would be essential to scale the adoption of battery storage.

? Supply chain integration: The government has incentivised domestic solar manufacturers through the Performance Linked Incentive (PLI) scheme and imposition of Basic Customs Duty on import of solar cells and modules to the tune of 25% and 40% respectively. The solar PV module manufacturing capabilities have got a significant boost over the last few years and the module capacity stands at 39 GW listed under the Approved List of Models and Manufacturers as of Feb 2024 and about 65 GW in total as of December 2023 as per some market reports. However, most of these capabilities are at module assembly level. We believe a complete backward integration especially for solar would be important in order to gain control over the cost of each component thereby ensuring stable prices and timely deliveries.

On the wind energy front, while the nation already has an indigenous ecosystem, it is important to have site-suitable wind turbine generators to maximise generation and minimise the levelised cost of energy. There is also a need to ensure glitch-free operation over the long run, especially for larger wind turbines.

? Merchant and C&I opportunities: Given the

power demand-supply mismatch arising from slower-than-anticipated power capacity additions, merchant tariffs are significantly higher than tariffs discovered for long-term PPAs, and this trend could continue for the next few years. This creates an opportunity for developers to enhance overall portfolio returns with some exposure to merchant tariffs.

The commercial and industrial (C&I) opportunity is also on the rise, with an increasing number of corporates evaluating direct tie-ups with power developers for medium to long-term power procurement supported by increasing facilitation by states. C&I demand is likely to be driven by businesses like data centres, where power cost forms a major cost item as well as corporates aiming to achieve their sustainability targets.

Company Overview

Adani Green Energy Limited (hereafter referred to as Adani Green or the Company) is Indias largest renewable power producer with 10.9 GW of operational renewable energy capacity as on March 31, 2024.

Playing a Pivotal Role in Indias Energy Transition Journey

Adani Green remains focussed on leading the charge for large-scale renewable adoption in India. The Company is committed to its target of ramping renewable capacity from 10.9 GW to 50 GW by 2030, 10% of Indias renewable capacity target. At 50 GW, Adani Green will help avoid carbon emissions of 81.5 million tonnes per year. Aligned with the countrys needs, Adani Green plans to continue setting up solar, wind and hybrid plants with a further focus on the deployment of large-scale energy storage solutions.

Planning, Execution and Operations & Maintenance (O&M) Expertise

To secure growth in this direction, Adani Green has implemented various strategic and operational measures.

The Company has locked-in resource-rich sites positioning it to go well beyond its 2030 target. The Company works significantly in advance towards securing transmission connectivity. Its design, engineering and supply chain planning are also attuned to support a fast-paced project execution. Further, by leveraging an expansive supply chain and maintaining long-term relationships with key suppliers, the Company is not only able to ensure timely deliveries but also optimise the procurement costs. These factors underpin the Companys ability to consistently commission projects ahead of the scheduled commercial operation date (CODs) as per the power purchase agreement (PPA) and achieve industry-leading EBITDA margins.

Demonstrating its project execution expertise, the Company has grown its operating renewable energy capacity at a CAGR of 41% over the last five years outpacing Indias CAGR of 13% over the same period. The Companys EBITDA from power supply has grown at a CAGR of 33% over the last 5 years.

Adani Green has a robust analytics-driven O&M approach supported by its Energy Network Operation Center (ENOC). ENOC enables real-time monitoring of all the operating plants across 12 states in India with the most granular insights and automated alerts leading to consistent 99%+ plant availability (solar) and reduced O&M costs. This has also enabled an industry-leading EBITDA margin of 92%.

Prudent Capital Management Practices

The Company follows a disciplined capital management philosophy to enable sustained growth. It aims at matching the debt maturities with the PPA term to de-risk the debt servicing and optimise stakeholder returns. Adani Green has one of the most diversified capital pools to meet its financing needs including domestic banks and financial institutions, international banks as well as global and domestic bond markets.

Key developments during FY 2023-24

? Adani Green signed additional PPAs for a total capacity of 2,333 MW and further, added 1,085 MW value accretive merchant projects to the overall portfolio during the year. The total locked-in portfolio now stands at 21,953 MW.

¦ Adani Green operationalised 2 GW of the 30 GW of renewable capacity under construction at Khavda in just 12 months of breaking ground and the total capacity addition in FY 2023-24 was 2.8 GW, which represents over 15% of Indias total renewable capacity addition.

¦ Adani Green was ranked the 2^nd largest Solar PV developer in the world with an impressive total solar capacity of 18.1 GW (as of the date of review) in Mercom Capital Groups latest Global Annual Report.

¦ Adani Green completed the transfer of 1,050 MW renewable portfolio (300 MW operational and 750 MW under execution) to a 50:50 JV it formed with TotalEnergies, receiving proceeds of USD 300 million ( 2,497 crore). This reinforces the Companys strategic alliance with TotalEnergies.

¦ Adani Green issued share warrants of 9,350 crore to the promoter group on a preferential basis valued at 1,480.75 per share, calculated in line with SEBI ICDR Regulations. The Company has already received 2,338 crore, with the rest to be infused within 18 months.

¦ Adani Green enhanced its funding pool under the Contruction Facility Framework to USD 3.4 billion by sealing its largest project financing of USD 1.36 billion senior debt facility and further added USD 400 million through five leading international banks.

The green loan facility, along with the recent equity funding through new JV with TotalEnergies and share warrants by Promoters, will not only enable the development of Adani Greens next milestone of developing the worlds largest renewable energy plant at Khavda in Gujarat but also makes it a fully funded business model with a clear roadmap and visibility to achieve 50 GW by 2030.

¦ Adani Green has completed funding of reserves for the redemption of the Holdco bond of USD 750 million due in September 2024. The redemption plan includes (i) USD 300 million received towards the new JV with TotalEnergies, (ii) ~ USD 281 million received from promoters ( 2,338 crore received out of the total 9,350 crore to be received towards share warrants as above) and (iii) USD 169 million available from debt service reserve account, hedge reserves and interest on the reserve accounts.

¦ Adani Green completed the refinancing of its existing Restricted Group 1 bond, nine months ahead of schedule, which was due in December 2024, with fresh issuance of new bonds for an aggregate amount of USD 409 million. The issue was oversubscribed by 6.5 times and at a pricing of 6.7%, well below the trading yield of the existing bond. The bond is an amortising structure bond with 18 years of remaining tenure closely matching the project cashflows, thereby de-risking the debt servicing.

Adani Greens operational capacity grew at 35% YoY to 10,934 MW in FY 2023-24 with greenfield addition of 2,848 MW renewable capacity including 2,418 MW solar and 430 MW wind projects. With this achievement, Adani Green became the first company in India to cross 10,000 MW renewable energy capacity.

The sale of energy increased by 47% YoY to 21,806 million units in FY 2023-24 primarily backed by strong capacity addition, consistent solar CUF and improved wind and hybrid CUF. The solar portfolio CUF remained consistent at 24.5% in FY 2023-24 with improved plant and grid availability while the solar irradiation was relatively lower. The wind portfolio CUF improved by 420 bps YoY to 29.4% in FY 2023-24 with improved plant availability, grid availability and wind speed. The solar-wind hybrid portfolio CUF improved by 520 bps YoY to 40.7% in FY 2023-24 backed by higher CUF profile projects commissioned in the second half of FY 2022-23 as well as improved plant and grid availability.

Power Generation Commenced from the Worlds Largest Renewable Energy Project in Khavda

In FY 2023-24, Adani Green operationalised 2,000 MW solar capacity at its renewable energy project in Khavda, Gujarat, by supplying power to the national grid.

The Company achieved this milestone within 12 months of commencing work on the Khavda RE project, starting with the development of basic infrastructure, including roads and connectivity, and creating a self-sustaining social ecosystem. Adani Green also transformed the challenging and barren terrain of the Rann of

Kutch into a habitable environment for its workforce of 8,000+ people.

Adani Green plans to develop 30 GW of renewable energy capacity at this RE project. The planned capacity is expected to be operationalised by 2029. When completed, the Khavda RE project will be the largest renewable energy installation in the world. The project is spread across 538 square kilometres, 5 times the size of city of Paris. Power generated from this project can power 16.1 million homes each year.

Khavda, located in the Kutch district of Gujarat, is endowed with one of the best wind and solar resources in the country, making it an ideal location for wind and solar energy projects. The region witnesses ~2,060 kWh/m2 of high solar irradiation wind speeds of ~8 metres per second.

With proven expertise in developing large-scale renewable projects, a robust supply chain network and technological prowess, Adani Green is best positioned to build this record-setting giga-scale plant with no parallel in the worlds clean energy sector.

Over the last five years, Adani Green conducted extensive studies and deployed multiple innovative solutions to ensure seamless and accelerated project development. Tests like geotechnical investigation, seismic study, centrifuge tests, resource assessment studies, land studies, environment and social impact assessment, environmental and social due diligence, and detailed feasibility studies, amongst others, before embarking on the development of this site.

The project will set a new precedent and will provide a scalable blueprint for ultra large scale RE projects across the globe. For example, to address the unique soil strata, Adani Green deployed underground stone columns to enhance soil strength. Further, the Company is deploying Indias largest onshore wind turbine generator (WTG) of 5.2 MW capacity, bifacial solar PV modules and horizontal single-axis tracker systems.

Additionally, Adani Green is undertaking various measures as a part of its ESG commitment. Aligning with the Atmanirbhar Bharat vision, the Company has focussed on developing indigenous and resilient supply chains with significantly increased share of localised procurement, such as WTGs and trackers. Waterless robotic cleaners are being deployed to address dust accumulation on solar panels. This will contribute to the United Nations Sustainable Development Goal 6 by conserving water in the arid Kutch region and maximise electricity generation. The Company is also actively engaged in community development initiatives across several villages in the region, focussing on education, health, women empowerment, water conservation, and enhancing community infrastructure.

Hydro Pumped Storage Projects

Adani Green has commenced construction work on its first hydro pumped storage project (PSP) of 500 MW on the Chitravathi river. The project is situated on a 407 acres land area in Peddakotla, Sri Sathya Sai district of Andhra Pradesh. The existing reservoir will serve as the lower reservoir, and plans are underway for the development of the upper reservoir. The project will have a generation capacity of 500 MW with an estimated 6.2 generation hours in a day. All required approvals, including the final DPR approval have been obtained, and financial closure for the project has been achieved.

Adani Green has a development pipeline of hydro pumped storage projects across Andhra Pradesh, Maharashtra, Tamil Nadu and Telangana. In the first phase, Adani Green aims to develop a 5 GW+ hydro PSP capacity by 2030.

With this project, Adani Green has raised its target for renewable energy capacity to 50 GW by 2030, affirming its commitment to lead the large-scale deployment of renewable energy, with an increasing focus on storage solutions to expedite an accelerated integration of renewables into the grid, thereby supporting the nations aim of reaching a non-fossil fuel target of 500 GW by 2030.

Future Growth Strategy

Adani Greens future growth strategy is meticulously crafted to propel the Company towards a formidable position in the renewable energy sector. With a fully secured growth path aiming for over 50 GW capacity by 2030, Adani Green is poised to leverage its well-secured, resource-rich sites in Gujarat and Rajasthan for solar, wind, and hybrid development, alongside hydro pumped storage projects in Maharashtra, Andhra Pradesh, Tamil Nadu, and Telangana. Adani Green is steadfast in its focus on delivering renewable energy with storage solutions, emphasising unparalleled scale and speed in RE project development. Moreover, Adani Green aims to maximise value creation by tapping into commercial and industrial (C&I) and merchant opportunities. The company is further focussed on increased digitalisation to drive operational excellence. It is also committed to driving improvements across environmental, social, and governance (ESG) performance. With a fully funded growth strategy and disciplined capital management, Adani Green ensures long-term sustainable growth.

Notes:

1. EBITDA from Power Supply = Revenue from Power Supply + Carbon credit income (part of Other Operating Income) + prompt payment discount - Employee Benefit Expenses excluding overseas expenses - other Expenses excluding loss on sale of assets and such one-off expenses.

2. Cash Profit = PAT + Depreciation + Deferred Tax + Exceptional Items + Distribution to TOTAL (which is part of finance cost as per IndAS) - other non-cash adjustments

The Company delivered a robust performance in FY 2023-24 with all-round growth in revenue, EBITDA and cash profit. The growth is primarily attributable to capacity addition of 2,848 MW during the year, consistent capacity utilisation factor (CUF) for solar portfolio and improved CUF for wind and solar-wind hybrid portfolio. The consistent industry-leading EBITDA margin is driven by Adani Greens best-in-class O&M practices enabling it to achieve higher electricity generation at lower O&M cost.

The run-rate EBITDA stands at a strong 10,462 crore with net debt to run-rate EBITDA of 4.0x as of March 2024 as compared to 5.4x last year.

Digital Focus

Adani Green has been early adopters of renewable technologies. The Companys operations are driven by data analytics enabling real-time monitoring of all its plants through the Energy Network Operation Center. This digitalisation focus has only increased over time given the efficiencies that it brings in and the possibilities it unlocks.

With digital and AI/ML integration, the Company aims to increase automation in its operations and to make every decision more intelligence-driven. The Company aims to drive, efficiency improvement and cost reduction across

functions through various digital tools including IoT, AR/ VR, cloud computing, cyber security, weather intelligence and power electronics. Some of the key focus areas are to further improve weather forecasting and enhance safety to improve the performance management of the Companys solar and wind assets, as well as to digitise and improve decision-making in project execution.

The Company has further enhanced its weather forecasting capabilities by integrating an in-house Long Term Resource Forecasting platform. This platform combines inputs from historical data from satellites, on-the-ground data collection and long-term weather predictions by leading global climate research institutions, and employs statistical models to optimise the forecast. This not only facilitates more accurate day-ahead predictions but also for the next 25 years and beyond, positioning the Company ahead in terms of more accurate resource forecasts and in turn improving bidding assumptions.

The Company is also making its operations safer by implementing AR/VR solutions to enhance height, electrical and vehicle safety. The Company has launched a VR platform for immersive training wherein the workers can visualise the dangers of not adhering to the safety standards. A self-paced training with kiosks has been introduced.

Human Capital Development

Adani Green adopts a holistic approach to talent identification, development and rotation. At the beginning of each performance year, the process of identification of high potential, critical talent and successors is initiated with the active involvement of all Heads of Departments. The outcome of this talent calibration process coupled with organisation-wide training needs identification (TNI) exercise culminates in the preparation of the annual learning calendar. Individual learning plan (IDP) for every critical talent, high potential, those in the succession pool are prepared and fast-tracked for execution. Technical learning on various aspects related to the efficient functioning of employees and teams is conducted on sites. Safety related awareness and training on safe work environment at both project and O&M sites are at the core of the Companys learning culture. These modules are conducted in offline as well as online mode. Behavioural and leadership training is done for people managers and high potentials. There are cadre-based orientation programmes which are conducted for graduate, post-graduate and diploma

engineers. Management and Executive trainees who join the Company from business schools are taken through a structured learning programme. There are modules to upskill the leadership capabilities of first-time people managers. Leadership development programme include personalised interventions such as Coaching, Mentoring and Shadowing. The Companys learning approach is metrics-driven wherein each employee is expected to complete 5 man-days of learning in a year.

An important aspect of the Companys learning methodology is OJT (On-the-job-training). A structured programme for this is implemented on sites and in some functions at the head office, particularly for fresh hires from engineering colleges and business schools. The Companys employees also participate in year-long leadership development programmes named Fulcrum, Takshashila and North Star which have tie-ups with educational institutions of international repute to groom future leaders at various levels of management hierarchy. These programmes prepare leaders through various best-in-class interventions and award completion certifications in collaboration with B-schools.

ESG Integration into Operations

Grid decarbonisation remains Adani Greens prime objective. Beyond this, the Company undertakes various initiatives across E, S and G aspects. The Company has extensively hired local talent for its projects and is upskilling them through the skill development programme. The Company also focusess on the localisation of supply chain through its comprehensive vendor development programme.

All the operational plants of the Company are single-use plastic free and zero waste-to-landfill certified. Further, the Company is certified water-positive for all its plants with more than 200 MW and has now revised the target to be water positive by 2025 irrespective of the plant size.

Adani Greens ESG framework is well aligned with globally accepted principles such as the UN SDGs and the UN Global Compact. The ESG disclosures are published in line with several globally accepted disclosure standards such as TCFD, GRI Standards, CDP Disclosure and so on. Adani Greens ESG initiatives are extensively recognised by global ESG rating agencies.

Key ESG updates during FY 2023-24:

? ISS ESG has ranked Adani Green among the Top 5 companies in the RE sector globally. Adani Green continues to lead in the RE sector in Asia with 1^st rank. Adani Green maintained its position in the Prime (B+) band for robust ESG practices and displaying very high level of transparency

¦ Adani Green demonstrates environmental leadership with an A- rating in the CDP Climate Change 2023 assessment. Adani Green has also been rated A in the CDP supplier engagement assessment for 2023

¦ Adani Green has been ranked 1^st in the power sector in the latest CRISIL ESG Assessment with an improved score for the second consecutive year

¦ Adani Green is conferred with the prestigious Grow Care India ESG Risk Management award in the Platinum category for Adani Green and the Safety award in the Gold Category for the ongoing renewable project at Khavda

? FTSE reaffirmed Adani Green as a constituent of the FTSE4Good index series with an improvement in ESG score from 3.2 to 3.7. Also, Adani Greens Governance score stands at 4.5 well above the global utilities sector average of 3.7 and the global Alternative Energy sector average of 4.3.

¦ ET Edge felicitated Adani Green as The Economic Times Sustainability Organizations 2023 for adopting valuable sustainability initiatives.

¦ In March 2024, the Science Museum in London, UK, unveiled the Energy Revolution: The Adani Green Energy Gallery, a major new free gallery.

Sponsored by Adani Green, the gallery delves into sustainable energy generation and usage and provides a comprehensive exploration of the urgent global need for rapid energy transition and decarbonisation to combat climate change. Through a captivating display of contemporary and historical objects from the UK and abroad, interactive digital exhibits and specially commissioned models, the gallery illustrates how human imagination and innovation have shaped the past, present, and future, while also emphasising the role that each individual plays in shaping the future of energy.

ESG Ratinas

ESG Ratings	Adani Greens Rating
CSRHub (Consensus ESG Rating)	Ranking of 96 percentile, with consistent ranking above Alternative Energy industry average
ISS ESG	Prime Band (B+), Ranked 1st in RE Sector in Asia and Top 5 Globally
Sustainalytics	ESG Risk Rating of Low Risk with a score of 13.9, significantly better than global Utilities sector average of 31.5; Part of Top 10 in RE sector globally
DJSI-S&P Global Corporate Sustainability Assessment	Scored 70/100, one of the best in Indian Electric Utility sector and significantly higher than average World Electric Utility score of 35/100
CDP	Rating of A- in CDP Climate Change & A for CDP Supplier Engagement, placing Adani Green in the leadership band
FTSE	Adani Green is a constituent of FTSE4Good index series with ESG score of 3.7. Also, Adani Greens Governance score stands at 4.5 well above global Utilities sector average of 3.7 and global Alternative Energy sector average of 4.3
MSCI	ESG Rating of BBB
CRISIL	ESG score of 67/100, the highest in Power sector