India’s largest renewable energy company, Adani Green Energy Limited (AGEL), is set to sign a long-term Power Purchase Agreement (PPA) with Maharashtra State Electricity Distribution Company Limited (MSEDCL) following a Letter of Intent (LOI). Under this agreement, AGEL will supply 5 GW (5000 MW) of solar power from the world’s largest renewable energy park currently being developed in Khavda, Kutch District, Gujarat. This agreement aligns with the tender conditions permitting Adani Power Limited (APL) to supply power to Maharashtra.
In addition, Adani Power Limited (APL), the countryโs largest private thermal power producer, will also enter a long-term Power Supply Agreement (PSA) with MSEDCL. This will involve supplying 1496 MW (net) of thermal power to Maharashtra from a new 1600 MW ultra-supercritical thermal power project.
Background
Maharashtra has been a leader in India’s renewable energy sector, actively contributing to the national renewable energy capacity. AGEL continues to support the state’s renewable energy mix, with its wind-solar hybrid cluster in Jaisalmer already powering Mumbai city since March 2023. As of June 2024, renewable energy constitutes 37% of the city’s energy mix.
The 6600 MW capacity, secured through MSEDCL’s competitive bidding process, combines 1600 MW of thermal power with 5000 MW of solar power. The tender permits APL to bid for both thermal and solar capacities, allowing APL to bid on behalf of AGEL for the solar component. This strategic collaboration leverages the strengths of both entities in the renewable and thermal power sectors.
The solar capacity award of 5 GW marks the largest such allocation globally since 2020, further solidifying AGEL’s leadership in India and on the world stage. Similarly, the thermal capacity award is the largest in recent years for India’s private sector.
Tariff and Development Details
The solar power has been allocated at a flat tariff of INR 2.70 per kWh for 25 years. The solar projects will connect to the Inter State Transmission System and will be developed in stages over three years from the PPA execution with MSEDCL.
The thermal capacity is awarded to APL on a Design, Build, Finance, Own, and Operate (DBFOO) basis, utilizing coal linkages under the SHAKTI Policy. APL will supply 1496 MW (net) of electricity from a new ultra-supercritical thermal plant (1600 MW) under a 25-year PSA. Power supply is set to commence 3.5 years after the appointed date for Unit 1 (800 MW) and 4 years for Unit 2 (800 MW).
Statements from Adani Executives
Mr. Sagar Adani, Executive Director of Adani Green Energy, stated, “We are glad to collaborate with MSEDCL to meet the state’s rising energy demand through renewable sources. Our goal is to accelerate Indiaโs clean energy transition and contribute to a sustainable future.”
Mr. Anil Sardana, Managing Director of Adani Power, remarked, “As India focuses on sustainability alongside economic growth, the role of conventional power in stabilizing the grid becomes vital. Adani Power is proud to partner with Maharashtra as a key supplier of reliable and competitive power.”
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 with MSEDCL for 5 GW solar power from the world's largest renewable energy park.){kind=link}