Adani Group has won a bid to supply 6,600 MW of bundled renewable and thermal power to Maharashtra on a long-term basis. While Adani Green Energy Limited (AGEL) will supply 5000 MW of solar power from its upcoming solar power park in Gujarat, Adani Power Limited (APL) will supply 1600 MW of thermal power from a new project.
Maharashtra State Electricity Distribution Company (MSEDCL) has issued Letters of Intent for the purchase of 6600 MW of power from two Adani group companies, and the two companies will sign long-term Power Supply Agreements with MSEDCL soon.
Adani group reportedly quoted a rate of ₹4.08 per unit, beating other bidders like JSW Energy and Torrent Power. The tariff is about Re 1 per unit lower than the Maharashtra Electricity Regulatory Commission approved average power purchase cost of Rs 4.97 per kWh (unit) for 2024-25.
In March this year, Maharashtra State Electricity Distribution Company (MSEDCL) had floated a unique tender for sourcing 5,000 MW of solar electricity and 1,600 MW of coal-based thermal power. The combination of solar and thermal power to meet peak electricity demands and also to supply power during non-solar hours and seasons. Bidders were asked to quote a unified tariff for both kinds of power.
The difference in power to be obtained from solar and thermal is to get equal energy weightage from both sources. As the ratio between thermal and renewable power is 1:3, 5,000 MW of solar power equals 1,600 MW of thermal electricity in terms of capacity utilisation factor (CUF).
The tender is for the supply of electricity for 25 years. As per the bid conditions, Adani Power will supply solar power at a fixed cost of Rs 2.70 per unit throughout the entire supply period, while that from coal will be indexed to coal prices, Business Standard reported.
Adani Green Energy Limited will sign a long-term Power Purchase Agreement (PPA) with Maharashtra State Electricity Distribution Company Limited (MSEDCL) under the Letter of Intent (LOI). The agreement will be signed for supply of 5 GW (5000 MW) solar power to Maharashtra from the world’s largest renewable energy park being developed at Khavda in the Kutch District of Gujarat.
The thermal power will be supplied from a new project to be set up by Adani Power Limited. It will be a 1600 MW Ultra-supercritical thermal power project, however net 1496 MW of electricity will be supplied to MSEDL, the rest kept for auxiliary consumption.
The thermal capacity has been awarded to Adani Power Limited on a Design, Build, Finance, Own and Operate (DBFOO) basis with the sourcing of fuel from coal linkages allocated under Para B (iv) of the SHAKTI Policy. Under the terms of the Award, APL will enter into a 25-year Power Supply Agreement (PSA) with MSEDCL for supply of 1496 MW of electricity on a long-term basis. The new thermal power plant to set up for this purpose will have an installed capacity of 1600 MW, with two 800 MW units to be set up utilizing Ultra-Supercritical technology.
A statement by Adani Group said that the solar capacity award of 5 GW is the world’s largest such award since 2020. Similarly, the thermal capacity award is the largest in India in recent years to be awarded to the private sector.
The company said that the solar projects are expected to be connected to Inter State Transmission System and shall be developed in a staggered manner over a period of three years from execution of the PPAs with MSEDCL.
Notably, as per regulatory requirement under Renewable Purchase Obligation (RPO), 32% of Maharashtra’s power demand is to be met from solar sources by 2028. At present it is 12%, so the procurement of 5000 MW solar power will help in achieving the requirement.
Power supply under the proposed PSA will commence three and a half years after the Appointed Date in case of Unit 1 (800 MW) and four years in case of Unit 2 (800 MW).
Sagar Adani, Executive Director of Adani Green Energy, said, “We are glad to collaborate with MSEDCL to meet the states’ rising energy demand through renewable sources and fulfil its RE commitments. Our goal is to accelerate India’s clean energy transition. This is a crucial step towards the country’s energy independence and building a sustainable future. Adani Green is well positioned to achieve the 50 GW target with secured resource rich sites in strategic locations, portfolio mix of renewables and storage solutions, robust supply chain and clear evacuation plans.”
Anil Sardana, Managing Director of Adani Power, said “As India advances in achieving its economic growth targets while maintaining a keen focus on sustainability, the role of conventional power in helping stabilize the grid and supplying base load power assumes greater importance. Adani Power is proud to partner a leading industrialised state like Maharashtra by becoming one of its key suppliers of reliable and competitive power from its existing and upcoming capacities, while enabling it to integrate an ever-increasing quantum of renewable energy in its grid.”
