Adani Green Energy Ltd
NSE:ADANIGREEN
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Adani Green Energy Ltd
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Ladies and gentlemen, welcome to the Q1 FY '23 Results Conference Call of Adani Green Energy Limited, hosted by Emkay Global Financial Services. [Operator Instructions] Please note that this conference is being recorded.
I would now like to hand the conference over to Mr. [ Abhishek Modi ] from Emkay Global Financial Services.
Thank you, Yashashri. I would like to introduce the management of Adani Green Energy Limited. Mr. Kaushal Shah, CFO; Mr. Raj Kumar Jain, Head of Business Development; and Mr. Viral Raval, Lead Investor Relations. Now I'll hand over the call to Mr. Kaushal Shah, CFO, for opening remarks followed by Q&A. Thank you, and over to you, sir.
Thank you, Abhishek. Good afternoon, and warm welcome to all the participants in this earnings call. Thank you for joining and hope you and your families are safe. We have uploaded the earning presentations on our website, and we hope that you have a chance to go through the same.
What I will do is that I'll quickly take you through the achievements and operational highlights. So let me start with the capacity growth. So on a year-to-year basis, the operational capacity has increased by 65% to 5,800 megawatts through a combination of greenfield projects execution and a successful acquisition of SB Energy portfolio. So in this quarter, AGEL has commissioned India's first solar and wind hybrid project of 390 megawatt at Jaisalmer. Overall there is a partial commissioned capacity of 1,275 megawatt. So that takes overall to 7,075 megawatt as we speak. But because of the long-term access issues, that is technically; the COD is not announced for the 1,275 megawatts. And we are in a process to charge another 607 megawatt in the next 2 weeks to 3 weeks. So all in all, we are at almost 7.7 gigawatt, which translates this company from the developing risk to the developed company having a very strong EBITDA margin. So that's what is on the capacity side.
Another important milestone in this quarter, as you are all aware, that we have a strategic partner in the form of IHC, and they have invested USD 500 million in this quarter. So we have received the cash also and that has help us to reduce our debt to that extent. So that's another important. So apart from the total, IHC is another partner, and they have invested at almost close to INR 2,000 into this Adani Green. So that's a big, big achievement of this quarter.
On the ESG front also, AGEL has received a ESG score of 66 out 100 in CRISIL Sustainability Yearbook, which is the highest in Indian power segment. So we continue to benchmark the improvement in the ESG score and making sure that we deliver this consistently. AGEL has also published a business responsibility and sustainability report, BRSR, well ahead of mandatory adoption required from FY '23. For taking all the steps, all our plants are plastic-free as we speak. And there are various other steps which we are taking. All of the audit committee on the governance front, comprising of the independent board, and there is no executive director or anybody from the company. So it's completely independent. Apart from that, we have a various committee risk mitigation committee, we have a legal tax and regulatory committee.
We have a CSR Committee who oversees the CSR activity and the ESG activity. All of that, the global standard framework on the governance front, we have already established. Now let me take you through the operations. AGEL has continued to demonstrate the consistent improvement in its operational performance. So if you look at the solar CUF, it is improved by 150 bps to 26.5%. Wind CUF has improved by 850 basis points to 47%. So this is highest ever reported by AGEL. So -- and another important thing, the newly added solar wind hybrid plant, which is country's first, as I communicated, has a robust CUF of almost close to 44%. So this is what is, as far as the CUF is concerned. This is backed by the high plant availability of 100% and high grid availability of almost 99%. So at both the front, we have improved.
Sale of energy, if you look at this has increased by 73% to 3,550 million units backed by the robust addition of 2,280 megawatts over last 1 year. Now this 3,550 is of 5,800-megawatt. But I was -- there is a further 1,500 million [ minutes ] approximate for the partially commissioned projects which we have, of 1,275 megawatt. So that's the -- and that we have earned the revenue on that also, that is part of my CapEx. So CapEx has reduced to that extent.
Revenue from the power supply has increased by 57% year-on-year to INR 1,328 crores and EBITDA from the power supply has increased by 60%, but we have been consistently able to maintain 92% EBITDA margin. Normally, when we look at the numbers, we look at the cash profit. So that is increase of 48% to INR 680 crores in this quarter. If, my friends, you are evaluating the [ PAT ], then in the last quarter of FY '21, we had INR 80 crore as onetime exceptional income. So if you remove that exceptional income, that mean increase in the profit is almost 30%. That exceptional income was generated because we have got rid of a small operation we had in the U.S. So that was the profit we had in that last year Q1, but that was in a onetime exceptional. So if you remove that, we are at 30%. And compared to Q4, we are almost at 58%. So there is a big, big, big jump in the operations and the performance.
As far as the run rate EBITDA, some of you would like to know that for 7,075 megawatt we will be expected is around INR 6,100 crores roughly will be the run rate EBITDA. And for another 600 megawatt is we are making it operational. We are talking about roughly around INR 500 crores as a run rate EBITDA. So this is what is the number as far as the run rate EBITDA is concerned.
And on the cash side, we have a cash and bank balance of around INR 4,000 crores in this quarter. So consistently maintaining the cash balance which is sufficient to make sure that whatever is the requirement we can meet immediately. And my net debt to EBITDA is 6.16%. So the overall net debt is coming at around INR 27,158 crores.
So all in all, very, very strong quarter we have. Some of the friends have a question on the rising interest rates. So I'm happy to tell you that my 76% of the overall portfolio is linked to the fixed project cost. So there is no impact of whatsoever in nature. Around 14% of the portfolio, we are about to refinance that in the near future, mostly in this quarter itself. So we have locked more or less for 90%. Remaining 10%, I have a reset due over a period of next couple of years.
So that's the only limited exposure we have. And having said that, overall cost of borrowing is only 8.9%. So that is also -- you should know. As far as some of the questions you might have is on the depreciation of the [ INA ] we, as a company, has a policy to completely hedge whatever is the ForEx exposure on the loan front.
And we have that already fully hedged. So there is nothing pending. And nothing is pending on that front, and I'm happy to report that Vneet Jain is joined on this call. So he is available for the answers of any questions if you have. So this is what is the update from my side. If you have any specific questions, we are happy to respond. Thank you so much for patiently hearing.
[Operator Instructions] We have our first question from the line of Mohit Kumar from DAM Capital.
Am I audible?
Yes, Mr. Kumar. Can you speak a bit louder, please?
Okay, I'll try. Congratulations on a very, very good set of numbers, especially on the EBITDA side. Sir, my first question is given that we have a large portfolio, is there appetite for taking more projects on bidding base is limited at this point of time? And the related question is that if and when the opportunity for hydrogen advisers from the group company will we participate in that setting of renewables from this company? Or is it completely in the [ pace ]?
Yes. Yes. Yes.
Vneet here. If I come on your question number 2 about the hydrogen. About the hydrogen, we are working. And as you're aware of that, our group company that is Adani Green Industries Limited, we are working very, very on the at the macro level for this whole hydrogen, green hydrogen value chain, starting from manufacturing then the green hydrogen generation and then the downstreams, which is in respect of the ammonia, urea funnel. So this -- the whole strategy of this green hydrogen is being formed at our group level. Now what would be the goal of Adani Green in that? Okay, we can't say right now because we have not finalized the strategy on this.
However, one thing getting we are working quite aggressively is on the pump hydro, because as we are aware of that either solar or wind -- or a hybrid solar or wind has a limitation of the higher CUF. And suppose the government requires the roundtable of power. So we require either the pump hydro or we require the battery storage. And we as an organization believe that the battery storage won't be good the long-term transition. So we in Adani Green are working very, very extensively on the pump hydro. This is in respect of your -- the reply to question number two.
In respect of question number one, well, as you are aware of that we presently we are having a large -- the pipeline of our PPAs, the manufacturing link, we have 8 gigawatt besides that, again, 1.3 gigawatts we have of the [ part banking ] we can have in execution and again our own bidding. So we are having a good pipeline of the plant [ PP ] project with us. And we are also working on all the new bids which are coming. We are not very aggressive on the bidding part, okay? But we are bidding it all, okay? And we will continue bidding for what a good -- the bid -- and surely, we'll send a new PPA also. I think I have [ responded ] your question, Mohit.
Understood, sir. Sir, secondly on the P&L on the income statement, was the large income booked in the quarter because of sale of the exchanges in this particular quarter and if you can quantify the contribution [ in this decision ]?
So Mohit, in the P&L, we have -- this time, we have a revenue of around INR 44 crores from the carbon credit. So this is what is -- this has started in this quarter. We had eligibility and we sold that in the market. So that is 1 thing. The income which we have generated which is just -- we have a INR 763 crores [ which we started ] generating in this quarter, which is part of my CapEx, not of my P&L. So that has reduced my overall CapEx cost as per the accounting standard.
How is the gross block of the 7 gigawatts which are operational right now?
Sorry?
Gross block for the 7 gigawatts operational right now? Gross Block?
No, no, it will be reduced from the CapEx...
No. no sir, no. Sir My question is what is the gross block for the entire 7 gigawatts which are operational as of now?
I don't have that ready-made number because balance sheets are not in. So we will send you offline on this.
[Operator Instructions] We have our next question from the line of Apoorva Bahadur from Investec.
Congratulations on a good set of numbers. Sir, I wanted to understand, you said that the company is planning to do aggressive on pump hydro. If you can throw some light over there, sir, on the hydro capacity [ line ] in the time lines over there. I think as we had it. So both the CapEx and the tariff side of things.
Thanks, Apoorva for your question. Apoorva, as you mentioned, we have just started working on the pump hydro as a business case within Adani Green. We are evaluating right now 6, 7 projects in Andhra, in Maharashtra, in Gujarat, in Rajasthan, in Bengal, okay? Right now, the preliminary evaluation part is going on, okay?
And in the initial, [ we get some very fortuity ], know the outcome. So therefore, we are going in the second [ gig ] of that, okay, which maybe in another 5 or 6 months, we will have some pre-feasibility report of these 6, 7 projects. And just after that, only we can say something [ of the work ]. So it's very difficult for me right now to say how much would be the Capex or the capacity at the location -- maybe in...
Sir your voice is breaking. Can you please repeat?
Is that okay?
Can you speak something, sir?
Is it okay?
Yes, please go ahead.
Yes. I would just mention that so we have started a few months back, evaluating the [ immediate ] projects which are [ feasible ] and which are available in the market. And right now, we are working on 6, 7 projects on the feasibility part, which we are hopeful that in the next 6 months, we will complete the pre-feasibility report on these 6, 7 projects which are located in Andhra, in Maharashtra, in Gujarat, Rajasthan and in West Bengal. So it's very difficult for me right now giving any number on CapEx or OpEx or getting some capacity of the projects. So just wait for the next 6, 7 months, we will come back on this, Apoorva.
Sure, sir. We will look forward to it. Sir, secondly, I wanted to understand then again, on this pump hydro and the entire storage business model. So what we understand is that the AEML will take care of industrial decarbonization while Adani Green is more for the grid decarbonated. Now so does that mean that the storage capacity from this pump hydro will be exclusively to meet the grid deficits? Or will it also be utilized to sort of supply around the clock renewable power to C&I customers and for producing hydrogen as well?
So all the options are possible, Apoorva. Okay, because as I mentioned in the beginning, the only solar only build or hybrid of solar and wind has some limitation on the CUF part, okay? So therefore, then there is round the clock bids are there, okay? And then there is, the round the clock requirement is there. So within Adani Green, this hydro will provide flexibility for us for the [ ignition ] and the grid, the flexibility. So this will be -- this could be a part of the grid stability, could be a part of the C&I supplier, and could be part of something else also Apoorva.
Fair enough, sir. and I think Kaushal provided the run rate EBITDA for the operational capacity, I missed that number. If you can please repeat it, it would be very helpful, sir.
So for 7,000-megawatt, we have around INR 6,100 and another 607 megawatts, which is about, we are in the process of charging, that could be around 500.
[Operator Instructions] We have our next question from the line of Nikhil from Alliance Bernstein.
So my first question, I just wanted clarification regarding the short-term market sales. So what I understood was that INR 763 crores is the revenue realized from selling in the short-term market. And even the units corresponding to that, about 1,500 units is not part of the 3,500 which has been shown in the presentation, that's over and above, and it's all being adjusted from CapEx.
Nikhil, you are right.
Understood. Understood, sir. And my second clarification I needed was on the ForEx part. So in the P&L, we could see 2 large ForEx items. One was about [ 100 crores ] adjusted interest gain and 200 loss outside that -- 300 loss outside that. So I just wanted to clarify if you could give some more details on both these items.
So see, what is happening is that every quarter I have to do mark-to-market provision in the books. So since dollar has moved from 77 to, let's say, 80. So there is a loss on account of that, and there is a corresponding income also. So net-net, it's a premium which I'm paying it of around 4% on the outstanding loan of around $2.5 billion, roughly, I'm just saying, offhand I'm remembering. So that's the number. So it's a premium cost net-net, you have to see that. But if you need any specific further detailing, what we will do is I will ask Viral to send you separately these details.
Perfect. That helps. My other question was regarding the debt position. I think you said 76% is fixed rate debt, which you have, I think, which is great. If you could just give us clarity on how long is the fixed duration for? Is it fixed for 3, 4 years or is it fixed for more...
More or less more than 10%, so -- 10 years. So what is happening is that we have some of the bonds which we have done and some of the ECB for the construction of -- sorry, not construction, but some of the loans which we have done and then the rupee loan are there. So both combined to put together, we have this percentage coming up.
So you are saying they are fixed in general for 10 years almost? Or is that's the duration for [ the same project ]?
Yes. For example, RG2, we have issued a bond for 22 years. So that's how duration is high similarly for some of the rupee. Also I have a fixed -- we have recently done the bond issuance, which is at 7.63%, which is also fixed -- so there is no increase on the cost on account of this even, and I'm happy to inform that we could refinance INR 3,200 crores and whereby there is a reduction. In fact, in this high environment we completed just before RBI first time announces the increase in the rate. And thereby, we will have a saving of around INR 44 crores annually on this INR 3,200 crores.
Understood, sir. Sir, my last question was on receivables. I think great to see receivables improve so much, which is much better than many competitors that we have seen in this space. So wanted to understand -- I mean, do you see this sustainable lower receivables...
I think I forgot in the opening remarks, but would tell you this issue [ we know ] which was a headache for us. Normally, we used to receive it in 120, 150 days, and I'm happy to inform that, that receivable is now absolutely current. And at least right from April onwards, we have seen this trend. In fact, April, we have issued INR 400-odd crores trade at one stroke. And thereafter, every month, we are receiving the [ due ] payment. So we feel that the rest of the receivable where more or less was not a major issue. But Tamil Nadu was 1 of the concern area, which is now resolved. So we feel that this will continue.
Understood, sir. On this, do you see any impact, there was some news going around that government is looking to give 48-month period to DISCOMs to pay a long outstanding dues -- do you see any impact from that sort of guidance coming in from the ministry, or nothing?
No. So I think -- this is Raj. So from the government's notification, Adani Green is barely impacted just because we do not have a long standing outstanding -- and the -- as Kaushal has just told you, my largest outstanding has been cleared. So I don't get impacted mainly with this. There may be some minor ifs and buts there, but it is not impacting us. And then second, for it to become operational against any counterparty, which is me, the counterparty has to opt for it, okay? So we are not seeing those things happening. So at least AGEL portfolio is not impacted. As an industry, it depends each party and each DISCOM how they have moved on this. There was also a recent challenge against this in 1 of the high court, although that there again, there is some movement there in that particular event as well. So there is a lot of water to flow in this case, but I am more or less immune in this case.
[Operator Instructions] We have our next question from the line of Puneet from HSBC.
Can you hear me?
Yes.
Okay. Great. Congratulations on good numbers. My first question is with respect to your 1275-megawatt where you've commissioned. When do you expect it to start throwing EBITDA and not -- so you won't have to charge it to your CapEx?
So there is a long-term access issue which is going on. We expect it to resolve in this quarter. So we are not sure when we are going, we are putting our best efforts. But as long as we are able to run the revenue on a short-term basis and which is a good one, that is okay with us.
What kind of revenues are you earning? Does it also mark the start of PPA from your perspective?
No. It is not starting unless and until official COD certificate is issued. My PPA clock starts from the date of issuance of COD. So still, it is not -- so 25 years start from that date.
Okay. And what kind of tariffs are you able to earn on that? [ is it from the ]...
It depends on the market.
Yes. And sir last quarter, what would it be on the average?
I've told INR 763 crores, I have told that this is the amount. Actually, I don't have that average number.
Okay. And what is the problem with the long-term access issue, if you can elaborate a bit there?
Sure. So what happens in an evacuation capacity, when you get it from, say, a CPU or whichever is your transmission counterparty, they enumerate multiple elements which needs to be completed for ensuring 100% guaranteed evacuation. So what happens in -- because this process involves multiple such elements. So 1 or 2 or 3 of such elements out of, say, 5 or 7 may not still be ready, okay, which is delayed by, say, 2 months, 3 months, 6 months kind of a thing.
So this is typical where there is a catch and -- catching gain between the generator and the transmission elements. Where -- which we need to generally find that we are not -- we are commissioning our capacities along with those elements. So what we see is whether our power will actually get evacuated irrespective of the elements, all elements coming. And so in a lot of these cases, while 70%, 80% of the element has come in, maybe 1 or 2 elements which are slightly delayed. So which is leading to LTA, long-term open access not being operationalized. And once those elements are over, which are very near to their commissioning, the LTA will be operationalized and we will have our CODs. But we can evacuate power. That is the reason how we are able to sell it in the market.
Okay. That's what I was curious about, equally adequate power, but the long-term access is not sorted.
Yes, yes. As I said, there would be at least in every LTA which you are because the capacities are no longer 10, 15, 20 megawatts. These are 300, 500, [ 700 megawatts ]. So they need to have the transmission lines, multiple transmission lines, multiple substations and all of that being done as part of giving you that 100% guarantee, that for next 25 years, come what may, our power will be evacuated, okay? So for that kind of a statement to make, they need to have all those elements. But technically, the system can still evacuate because the substation which you have connected, that has those transformers. There are some transmission lines which are already made so you can evacuate your power through that.
Okay, got it. That's a good explanation. The second is for the new plants, which you're commissioning, what kind of PLFs are you now getting on the new technology, both on the solar and the wind side?
So we have in hybrid projects, we could generate 44% CUF.
Okay. Possible to break up between solar and wind?
Let me just check what is the breakup. Can you just give me that. No, no, no, he wants in hybrid. Solar is 32% and wind is 54%.
Okay, interesting. The second is, if you can also talk a bit about what are you experiencing in terms of the bidding environment is just slowed down a bit. And what kind of bids are you expecting? And how do you expect to participate in that, given that you already have a very strong pipeline?
Sure. So as AGEL if you see our history, we have not necessarily chased the price down despite having the capability. And that is the reason why our cash flows are healthy and the performance is good. So you would see, if you are tracking the market in the recent past, we are not necessarily bidding the prices down. And we believe the market needs to correct a bit. And with the recent increase in the interest rates and the recent increase in the plus 1, 1.5 years increase in the module prices, some of these projects which have been recently bid out may see a meaningful stress. And market should correct, which is the way it has moved in the last 5, 6 years in the industry. So given that we have a large pipeline, we don't need to necessarily worry about the near-term execution, whether we have the expansion, whatever we want to achieve, is there or not. So we are watching the market, and we bid where we believe that we are making a differentiator. So we believe the market should correct a bit, and then we would probably be there taking some capacity.
And what kind of bids are you, tenders are you likely to see? Any thoughts there?
So see, in the last 2 years, 3 or 4 things have happened in the sense that the concept of hybrid has helped the country in integrating more [ in of this ]. The concept of RTC Power is something which is evolving. At the same time, solar and wind has placed its own role just because of what India has solar capacity today in the daytime, we don't necessarily see the [ prices ] in the daytime at whatever peaks you see in the evening.
So everything has its own merits. So we expect that there will be a balance of all the 3 or 4 types coming in. In some cases, as Vneet was just mentioning, pump hydro will be roped in to cater to the evening peaks being addressed. So -- all of that is expected to come and market is expected to evolve as we move forward. The project sizes may become further large if we are talking about RTC solutions, because if we talk about pump hydros being tied up, they need to be tied up with meaningful capacity.
So broadly speaking, we are saying, yes, all 3 or 4 modes of the bids will come in. And there will be emphasis towards meeting the non-solar [ R ] power, non-solar hours power as well through some of these solutions.
[Operator Instructions] We have our next question from the line of Rahul Modi from ICICI Securities.
Congratulations for good numbers. A couple of questions just to understand. Sir, how is the module availability now that we've got both tariff and nontariff barriers? So for the new capacities that we are targeting both in the hybrid and only solar space. So how are you looking to mitigate availability issues -- and how -- when do you expect our captive module supplies to start coming in?
So that's a very pertinent question and which is what is impacting a lot of our competitors for their lead term projects. So good part is we, as part of our manufacturing tender, got allocation of [ good ] solar manufacturing capacity sell-in module. That has been -- we have 26% stake in that, and the balance is held by our sister company which is expert in doing solar modules manufacturing.
So that capacity is just nearing its completion models are all done and [ sell ] is about to be made operational very soon now, in the next 1, 1.5 months. So that provides us or basically gives us some amount of comfort with respect to our supplies if we need to have that supply is coming from there. At the same time, for the requirements of FY '23, we are more or less already done in terms of what we want to buy.
Going forward, as I said, we will have these capacities. In almost all -- not -- I wouldn't say all, but in almost all the taxes or [ custom pays ] on the modules, has been in force is a pass-through for us in our PPAs. So there again, we have an option of buying it from outside India. So we have significant flexibility in doing what we are doing. Separately, [ Gapicular ] solar company is further expanding their manufacturing capacity.
By early next year, the manufacturing capacity with that company with selling modules will be close to 4 gigawatts per annum. And they are further expanding that in stages to a significantly higher capacity. So from a [ running ] perspective, we have significant flexibility in terms of what we want to do based on where I have the changing law or more change in law are going forward how I want to. [ Bid ]where the BCD will not be a change in law. I can always tie up my capacity prior to the bid even with my sister company. So all of that flexibility is available with me.
Sir, that's very helpful. Actually, so this 4 gigawatts we are expecting to get commissioned in the manufacturing over the next 12 months, that will be on an annualized basis. And that -- you are saying that further, obviously, so that will be modules plus sell and then you will be backward integrating further over a period of time.
Yes, the sister company is further backward integrating. They are going up to from [ ami silica ] the modules fully integrated in phases. So they have also won some capacity under the PLI tender to do it. So that is a mandate in any which way they have it. So they are moving ahead with that.
Right. And sir, the manufacturing-linked tender has been PPAs for around 9 gigawatt out of the 12. So you -- are you seeing any interest for the balance 3 or will be concluding at least this as per now?
No, no. So we have already -- so in my portfolio, I think I have, what, 1,300-plus, some 2,100-odd megawatt capacity to be tied up. And that we already have -- we know that SECI already have proposals to close them. So the process is on, and we expect that probably in the next 30 to 60 days, most of that capacity should be closed. What is also just because of the recent increase in the power prices, some of this backlog [ out ] is no longer a stress for SECI to place. So some of the discoms which were otherwise looking to price it very fine and wait for the projects prices to go further down in the future bid because they had no compulsion to buy for an immediate demand, all of that capital has gone out of the picture now.
Sure. Sir, this is helpful. Sir, now on this, just taking this further in terms of the capacity addition now that the module prices, at least the [ rack ] rates from China have stabilized to a great extent. So do you see -- so where do you see the tariffs? I know the only solar bids are not coming as much -- but where do you see the tariffs stabilizing overall? And what is our comfort level as Adani Green?
See, I think it's a difficult question to answer if you ask me, just because everyone has their own internal thresholds on the tariffs, okay, or on the returns and their own cost of setting up the plant, cost of [ determining what is economical ], their own optimization level on configurations, okay? So -- but what at least I can tell you is today's tariff, which we are seeing in the market after the -- after considering the impact of BCD and the revised GST are not remunerated tariffs.
And there will be reverse how much -- let's see how the interest rate environment moves. But it is fair to assume that we should see at least 8 to 10% movement up back. But it's difficult. And it will -- when -- how the market moves will decide it. I suppose there are other considerations which can keep the tariff low, fine. What I'm concerned about as a strategy is whether I can get better returns than the market when I execute my project. For that, I have my own capabilities, which I can do.
Sure. but you see the market stabilizing when you say 8% to 10%, that's on a base of 250?
Rahul, I think I don't want to necessarily give a number on this because it is very subjective. It can be taken in multiple different contexts. But I think it is -- as I said, it is the consideration of each and every party. It may so happen some strong parties can actually work with even lower increase, some parties may not be able to do.
So it's different. It's question is whether I am able to optimize myself. How -- and how am I making the tariff workable for me? Am I better than others? That is what I can drive, which is what I have -- I can run and I have been able to achieve. So -- but I -- at the same time, I understand your point. So the recent bids plus 8% to 10% is what you should assume.
Got it. Perfect. And just last question from my side is that at Adani Green, sir, how much would be an idle capacity addition that you would like to see on an annual basis, basically for the next -- anywhere between 5 to 8 years?
Yes. So answer to your question, Rahul, is that we are planning 3.5 to 4 gigawatt annually. That is about the greenfield. And if something comes up on inorganic, that will be over and above that.
We have our next question from the line of Apoorva Bahadur from Investec.
Again. So I think I understand you cannot share the tariffs probably at the current module prices, but can you please share the capital cost that we are seeing for the projects being built on current modules or including the BCD and et cetera?
So we don't have that off-hand number on hand. What we will do is that I will ask Viral to share it separately with you.
Fair enough. Fair enough. Anything on the, when do we have that, if you can send that number for wind capacity as well, what would be the current capital cost.
No, no, I don't have that available. Typically, it is INR 4 crores, INR 4.5 crores for solar, and wind it is INR 5.5 crores to INR 6 crores. But it depends on individual case-to-case basis. So very difficult to often tell you about general costs. So we will share that separately.
[Operator Instructions] We have our next question from the line of Puneet from HSBC.
My first question is if you can share what kind of hedging costs are you seeing right now in the current environment of [ sharply rate increasing ].
So in fact, the forward has come down to 3.5%, while the dollar has increased from 78 to 80, but the forward cost has come down. So all in all, we are seeing that 4% is reasonable cost to assume over and above the cost of borrowing. That's what we are seeing this.
Understood. And second, you also talked about potential capacities from inorganic opportunities. Can you talk about what -- which are the large ones that are on the block currently?
No, no, we don't have currently on the block. We will be -- I'm just saying that if -- actually, our internal target is that which is visible clearly from the greenfield angle, which is 3.5 to 4. But if some opportunity comes up, then that will be an additional. Now today, I don't have that opportunity available. Unless and until we have that return minimum threshold of around 16%, we are not in a hurry to buy any asset.
But are there some large assets which are awaiting buyers?
I want to know from you, dear friend. If you have anything, please share with us, we are happy to look at it. You are talking to so many companies on your calls, so you must have some information. If you can share with us, that would be a great help.
So Puneet the last large public process was done for an entity which is under consummation, which was -- if I want to take the liberty was, I think Shell. I think that was the last large public process. Obviously, you would understand that privately, there are multiple discussions which happen, which have their own obligations of confidentiality.
But what -- we would caution by saying that we are open as a strategy to look at large-scale acquisitions. We have done that in the past, and we have successfully integrated them in our business. So for us, the growth side is open both on the greenfield side as well as doing the brownfield [ flash of a ] fully built portfolio as long as we satisfy our returns. So that, I think, should help you in your question.
And are you largely satisfied with how L.B. Energy acquisition has been going in that execution?
Yes, yes, yes. So the good part about that acquisition is we were in a very good position to integrate that in our current set of stream in terms of project execution. Some of those projects are just coming now for execution. Some of those were there last year. And -- the issues which probably the portfolio was facing was something which we were very comfortable to handle.
And those could give us the additional figures which I think some of the players in the market could not achieve. So from that perspective, it's a very good acquisition, which we have done, and we have been able to integrate that very well. Results, obviously, as we move forward, you will be able to see.
And also, can you give some plan -- or your execution plan for FY '23, '24 and '25 or what overall capacity will [ use to ]?
So I told you, generally, we will be adding around 3.5 to 4 gigawatts annually. That's what you should count when you consider the overall numbers.
Okay, 3.4 to 4 gigawatt -- this year also a similar number? And this would be excluding the 1,275 number or will it be in addition to that?
Sorry?
Is 2 years the 3.5 to 4 gigawatt will be in addition to what you've already done?
Is including whatever we have done, I'm talking about yearly, not quarterly.
Puneet. The schedule of commissioning is already published by us recently in our AGM presentation for the existing portfolio. So it has given year wise up to FY '26, how we plan to execute the projects.
I will have a look at that. Thank you so much for this.
[Operator Instructions] As there are no further questions, I now hand the conference over to Mr. Abhishek Modi of Emkay Global for closing comments. Over to you, sir.
Thank you, the management, for participating in the conference. Any more further questions we may have, we may contact Investor Relations at Adani Green Energy. And since you don't have any questions, I think we will end the call here.
Thank you. On behalf of Emkay Global Financial Services, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
Thank you. And if you have any questions, please reach out to Viral or our Investor Head, Bala. Thank you.