Adani Green Energy, a major player in India’s renewable energy sector and currently under US investigation for allegedly inflating the company’s value through bribes paid to Indian officials for government projects, has also come under scrutiny by the US International Trade Commission (USITC) for reported intellectual property rights (IPR) infringement.
According to The Indian Express, USITC has initiated a probe against the company and its affiliates, accusing them of infringing IPR in connection with the sale of solar cells, modules, and panels in the US. This investigation, prompted by a complaint filed on 1 October, also highlights broader efforts by US authorities to address unfair trade practices in renewable energy imports.
The allegations include violations of Section 337 of the US Tariff Act of 1930, a provision that empowers the USITC to block imports of goods found to infringe US intellectual property. The complaint names Adani Solar USA Inc., based in Texas, and India-based Adani Green Energy Ltd., among others, as respondents. If the allegations are substantiated, the USITC may issue exclusion orders, either limited to specific products or broadly covering all infringing items, potentially affecting Adani’s operations in the American market.
This development comes at a time when Indian exports of solar products to the US have significantly increased, bolstered by tariffs imposed on Chinese-made solar cells and panels in 2018. These tariffs, introduced by the Trump administration, created opportunities for other markets, including India, to gain a foothold. Official data indicates that the US imported $2.3 billion worth of solar products from India in 2023, with India accounting for 11% of US panel imports in the second quarter of 2024, a significant rise from earlier levels.
However, Indian solar exports have faced challenges in the US before. Earlier this year, Indian solar panels were blocked due to their reliance on Chinese components, a key issue given the US’s enhanced scrutiny of solar imports. The latest allegations against Adani Green Energy involve a complaint by China-based photovoltaics company Trina Solar, which accuses the company of unfair trade practices in the renewable energy sector.
In parallel, Adani Green Energy is grappling with bribery allegations. US federal prosecutors recently charged key Adani Group executives, including Gautam Adani, with involvement in a $250 million bribery scheme to secure solar energy contracts in India. These charges, filed under the Foreign Corrupt Practices Act (FCPA), carry significant legal risks, as the Act prohibits corrupt payments to foreign officials to obtain business advantages.
In response to these developments, Adani Green Energy has paused its proposed $600 million dollar-denominated bond issuance. The decision reflects the mounting legal and regulatory challenges the group faces in the US. These issues may also affect the company’s broader plans to invest $10 billion in American renewable energy and infrastructure projects aimed at creating jobs and enhancing US energy security.
The USITC’s investigation forms part of a wider initiative to promote domestic manufacturing under policies such as the Inflation Reduction Act of 2022, which allocates $400 billion to clean energy development.