Adani Power, part of the Adani Group with interests in ports and coal trading, has been shortlisted by the Nigerian government to purchase two gas based power plants ? 972 MW Ughelli Power and 1,020 MW Sapele Power ? with scope to expand, a person with direct knowledge of the development said.
The final bid, an initiative of the Nigerian government to attract foreign and local investment to enhance power capacity, will have to be submitted on February 2012.
The move signals Indian power producers using their expertise in building power plants in India to set up and operate similar plants overseas, which assure them coal and power purchasers.
The company, owned by billionaire Gautam Adani and operates 2,000 MW, has also been shortlisted to build and operate power plants in Kosovo and South Africa.
Adani Power has bid to build a 600 MW with an option to double its capacity for Kosovo E Re Power, refurbish its 678 MW plant by 2016, manage, develop and operate a mine adjacent to the plant.
Government-owned Kosovo Energy Corporation JSC will purchase power generated by these plants. It has given land and provided lignite access. Other shortlisted bidders includes a consortium of US-based AES Electric and Demir Exports.
In South Africa, the company has been shortlisted by Exxaro, South Africa?s second largest coal producer, to build a 600 MW coal-fired plant. Adani will use its skills to build power plants in India and Exxaro will supply coal and buy power.
?In foreign countries, power producers have better access to resources and they clarify power purchase agreements (PPAs),? an investor, who is keen to invest in Indian power projects, said. ?The generation and distribution bids are very clear overseas.?
Lack of coal supply, inability of debt-ridden state electricity boards to sign PPAs with power producers and rise in land acquisition costs are pushing Indian companies to build power plants outside India.
Earlier Adani Power, whose plan is in works to triple its power generation capacity to 6,000 MW by March 2012, had said that it will build additional 6,500 MW only after it signs longer tenure PPAs and sources necessary coal. The company, which obtained necessary clearances, is unable to order critical equipment that suits the coal it can source.
