Adani Power Ltd (APL), India’s largest private thermal power producer, has received a Letter of Intent from Maharashtra State Electricity Distribution Co. Ltd (MSEDCL) to supply a combined 1.6 GW of thermal power and 5 GW of solar power.
The award, which totals 6.6 GW of energy, was secured through a competitive bidding process initiated by MSEDCL. Under the tender’s terms, Adani Power was permitted to bid for thermal power in conjunction with solar capacity, the latter of which will be supplied by Adani Green Energy Ltd, a group company.
As part of the agreement, Adani Green Energy Ltd (AGEL) will sign a long-term Power Purchase Agreement (PPA) with MSEDCL to supply 5 GW of solar power. This power will be generated from the world’s largest renewable energy park, currently under development in Khavda, Gujarat. The solar power will be provided at a flat tariff of INR 2.70 ($0.032) per kWh over a 25-year period, with the solar projects to be completed over the next three years and connected to the interstate transmission system.
Meanwhile, Adani Power will provide 1.496 GW (net) of thermal power from a new 1.6 GW ultra-supercritical thermal project. The long-term agreement for thermal power supply will meet a portion of Maharashtra’s growing energy needs.
Adani Power and Adani Green Energy, in a joint statement, highlighted the significance of the awards. “The 5 GW solar capacity is the world’s largest such award since 2020, reinforcing AGEL’s leadership in India and globally in renewable energy. The thermal capacity award is also the largest for India’s private sector in recent years.”
The contracts underline MSEDCL’s strategy to diversify its power procurement, incorporating both renewable and conventional sources to meet the energy demands of the state.
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